For a contemporary feel, I'd cover the brick. But, you can paint it black, or white to update a bit. No, I wouldn't paint the paneling above the matching color.

Paint it white!

The people down the street from me just painted their whole house ( brick) something new that lets some of the undertones of the brick show though. It looks fabulous.

Black or white as previously mentioned. Check out my before and after of my painted stone fireplace... https://www.houzz.com/discussions/port-moody-living-room-before-and-after-dsvw-vd~226724

Karl..checked out your space. fabulous!

You can paint it white with the wall above it the same as the rest of the walls.

Yes, paint it white or grey.

leave it alone, do a sort of antiqueing method, or paint it black-but if you paint it black, have some sort of tie-in to the rest of your decor, ex. natural pillows with black ink outlines- black vinyl storage chest next to fireplace, and black/white photo artwork over fireplace.. then add your color scheme.

I would paint it white. I would probably go for the upper part and mantle too, but that is assuming the white is a good match for the rest of the room.

What is in your fireplace? It looks like a TV...
I would paint it white, but just the bricks. Then you wouldn't have to paint the cavity area. You can then easily paint it any colour if the white was too much.
I agree with tberry48. just have the black/white artwork over the fireplace... there is a lot going on at the moment.