Cover the brick with concrete,go for a stucco look,paint wall when done light-med color,add a colorful designed tile on the seating brick after U concrete it.Add a rustic timber mantle above the fireplace.Something over the mantle ,your choice,Tv or Painting..Or whatnot,Make sure it ties into the tile designed for color accent

Make a little fence like thing to put around the ledge while the kids are young and then it can be removed as they get older.
Is it a wood fireplace or gas???? If it is wood I would convert it to gas.

In order to change the location or height of the firebox you will need to rebuild it so it will be level with the floor like the one in your picture. Since it is sharing the flue with the fireplace behind it that will be hard and it makes me wonder if there is a structural component to the entire installation. Any of these issues can indicate a complete rebuilding of the fireplaces to eliminate the problems. Have you considered eliminating the raised hearth all together? I usually do not advise my clients to put the television above the fireplace but you do not seem to have the ability to have more than one focal point in your room and this would be a solution for that.

I know it is scary to have this configuaration when your kids are small...but they will be grown before you know it and that looks like a great fireplace to sing songs and roast marshmellows by!

I would like to see more of the room to really come up with a solution for you.

I don't know how much you want to spend, but you can reface this with stone tile and do a nice mantel piece across the area over the fireplace. I've seen this done on HGTV shows (and my husband is a master carpenter/builder) who's remodeled a number of these. There are a lot of options but it depends on the budget.

Your Inspiration photo shows pretty much what I was going to suggest and you should be able to do it without it costing the price of the fireplace.. :) That 'step' looks like the hearth, which does protect your floor from escaping 'hot stuff' that may pop out from the fire, but can be eliminated if it's a real necessity. Otherwise, there are other ways of protecting your little ones - a bumper works well. I think your Inspiration Photo says it best for the rest.. gl witih it!

I personally think the brick is quite beautiful. Perhaps incorporating some steel into the shelving might be an interesting way to create an industrial modern aesthetic. Another way might be to incorporate a darker wood like walnut or even a stained rift sawn oak. Something that could contrast with the white brick in tone and texture. Consider the possibility of sliding or slide-fold doors at the tv so it could be concealed at times. Then incorporate a firescreen with a custom laser cut steel pattern. Also, don't forget lighting. It would be interesting to incorporate some lighting into the shelving.

One thing that I thought of, since there is an un-usable fireplace on the opposite wall, and I am guessing you mean it shares a flue: I would suggest to maybe tear out some of the bricks on this side, (but maybe have it a few bricks smaller than the fireplace on this side) where the other fireplace is located, use those bricks to brick in the other fireplace to close it off. You could the finish off the inside of the new boxed area for firewood or storage (if the fireplace is not going to be a wood burning fireplace.
In the photo, it appears as though the room, or at least that corner is not really on a true square. I am getting that by the way the hearth by the right hand door is cut and the way the left side of the fireplace wall looks as though it goes somewhat sharply to the right. It could be the angle of the photo.
My One suggestion would be is that you would not be able to build anything deeper than about the 8 to 10 inches or so that appears to be all you have available on the far right side by the door. That would bring you to the rounded grey edge. Going from that, you could build almost any type or style of built in's that you would like, whether it be shelving units, cupboards, or a combination of both. (Don't forget about the firewood box, if you made/make one).
Personally, the only thing I would do around the fireplace (and the possible firewood box) would be a mantle piece. Many times you can find very nice ones at a salvage yard and refinish it yourself and save a lot of money. Or you can do something as simple as putting up a reclaimed piece of lumber above the fireplace. You can then mount your flat screen TV above that. I do not see that there would be any discomfort having it there because the fireplace is not really that high to begin with. Furthermore, If you use a swivel mount for the TV, you can position it any way you like for you comfort.
I do not know what is to the left of the fireplace wall, but I can see that there is a bi-fold door there with possibly 6 to 8 inches available along that wall. IF there is, I would build another built-in, to match the one to the right of the fireplace. However, starting at the "sharp" square corner of the hearth, I would make it a rounded corner built-in unit. You may possibly be able to use any left over bricks to build up the rounded hearth to meet the new built-in, if you so choose.
I am working on a drawing which I hope to add to this soon, or at least submit in addition to this post. Best of luck with however you do your fireplace wall.

If you like clean line contemporary, how about something like this? Bookcases are pretty traditional looking.

you don't have the space to do the complete design that you like it will be out of balance with cabinets built on one side so only build the left hand side of the fireplace unit in the pic. remove the heartht build the fire box out and create a fake box to stack the wood like the picture in proportion with the fire box . above that build the mantel exactly like the pic you like so much add a pot light to balance with the existing pot light you already have. If you want you could convert this to gas this would give you a simular look to the pic but minus the cabinet built in on the far right of the pic.

I like the clean look of what you have, I think it could be lovely if accented well. maybe you could lower the hearth, but I would like to see rest of the room before suggesting.. if you get a chance can you load more pics?

We actually had the same dilemma with our fireplace - Our house is very contemporary and we are very found of straight lines. We have not definitely made a decision - based on preference - we are either going to face over with marble- or travertine - then cut the step out.

Our contractor has also advised us as well not to put the flat screen television over the fireplace hearth unless we have a mantel o rthe television is at least 12-24" above the hearth. We did not find this an issue as we do not have a roaring fire going every day.

But I do love the inspiration photo. Good luck with it all.

It's so hard to recommend design ideas from one photo, without at the very least, knowing the style of the home.

I would Tone down the Brick with a Brown Glaze. Add a Mantle over the Fireplace and a Built in Book Shelves to the Right and on Top with a Cabinet with Doors on Bottom It would look like a Piece of Furniture.Do not Stain Paint with colors from other Fabric Colors

I would add a lot of colorful pictures on the brick, use the fireplace for candles....and then throw some pretty pillows around that will coordinate with the pictures!

Been there!!

Start with a nice thick wood mantle and place it across the width of the brick...from left to right. Place your tv above the hearth (if that is what you wish). Then begin your wood cabinets the same distance from the firebox as the space to the left of the firebox. You can have the door cabinets below the "Mantle" and open shelving above. Have them built out to the front edge of the hearth. Then, put cushiions on the rest of the hearth. You can simply move the cushions to the floor when you want to build a fire. Paint the shelving and cabinets in a darker color.

I like the hearth and it may actually keep the kiddos away from the fireplace, making it safer. If you remove it, your fireplace will be up in the air.

As I study the photos of your fireplace and your inspiration photo, I have a few questions. Do you want the actual components in the inspiration photo or just the overall effect? If you cannot remove any brick, in order to have a woodbox, it would have to be built out over the hearth. Is there enough depth there to accommodate one? (It's hard to tell from the photo.) The hearth becomes narrower at the end behind your door, so anything you build out to the edge of the hearth would have to follow this line, unless you don't build out to the very edge of the hearth but, again, you may not have the depth for a woodbox. The inspiration photo is a very long wall so that it doesn't look crowded with cabinets, fireplace and wood storage, your wall is shorter so you may want to simplify.

Building out a wood storage area and cabinets will give you a slightly different effect than the inspiration photo because your fireplace will be set back from the face. (It almost looks like the fireplace in the inspiration photo was built out deeper?)

If it is more the effect you are after, an idea would be to paint the brick a lighter shade of your wall color and add a hefty white ledge down the whole length of the wall as a mantel. Hang your TV above that (will getting power to it be an issue?). Find a wood storage unit with the modern lines you like and place it on the hearth to the right, perhaps a basket like West Elm sells & a matching basket for fireplace tools? Decorating your ledge keeping balance with the tv on one side may be a challenge, but overall you will have a clean, simple, modern look, with minimal expense and work. Maybe a family photo gallery, pottery with twigs & branches, etc?

You might think about removing the hearth and then plaster over brick for a smooth finish.

Add some sparkle by tiling that entire wall---the light from the door would just dance off of it! Pic for inspiration-style, color, and texture (rug)... [houzz=]

Dependent on style taste budget

You can leave brick if sound no demo required would make good substrate for tile by the looks of it www.rookwood.com alot of modern design possible

This is the Stonecoat Finish..... real limestone hand coloured and carved after blown on the wall. stonecoat.com

Actually, I like your fireplace and the wall. I like the white brick, the raised hearth, it's modern simplicity and elegance. The inspiration photo shows a completely different type of house, more traditional, more cottage-y. Unless you're prepared to tear the whole thing out, or if $$ is an issue, go with what you have.

It would probably be used more often with one of the latest gas/alternative/safe flames. I never wanted a fireplace; who needs the extra mess to clean up, and you know who was likely to do it! New technologies have provided many alternatives, and you will enjoy your fireplace more with one of them.

The addition of a wood mantel across the length would work. Houzz has several photos of just this configuration. It always looks sleek and sophisicated with the appropriate accessories.

You will most likely find if that facing brick is removed that there is a fair bit of room back there. Judging from the size I'm guessing there is a fireplace in the basement or across in the other room???

Are you prepared to re-do or patch the flooring if the hearth is removed?

JW

Love the stone coat finish! Looks nice!

I see the door just to the right - is it a frequently used entrance? I would try to use metal and wood on that fireplace and create a mudroom effect with some simple wood shelving or boxes and metal hooks. You can go any style that suits you - contemporary or traditional. As long as you have things fairly closed up - no open boxes - and sparse use of the hooks, this would be a practical and possibly great decorative use. Going eclectic could add great color to the look with those inexpensive brightly colors covered containers.

I like this... love the grey fireplace. For some reason, the image its cropped so that it does not show the built, in bookcase too the left side of the fireplace ..

You've got a lot of options.
An asymetrical fireplace is a very modern touch I think I would embrace it.

Your inspiration photo is excellent. I believe a previous commenter mentioned building out the turn corner into a shallow area. Place recessed lighting in it with glass shelves. I would face it to oppisite room. Viewed from brick fp area you would see small wall. Repeat same walled off area on exterior wall to form defined area around brick, then, you don't have to build out all of brick but can use molding and an extended mantel from wall to wall. That would define the fp and brick beautifully. That would be the simplest. You could add extra shelving bookcase on right if desired too. Great space!,

We added a soapstone surround to our plain fireplace. It looks beautiful against the fire, and it adds weight and dimension to the fireplace, making it look bigger. Soapstone is easy to cut and install, relatively inexpensive and you can order it to your specifications. It's also really easy to maintain -- just oil it every so often.

[houzz=] your first photo reminds me of this.

My background is helping individuals come up with DIY approaches to problem solutions.
Given you would like a contemporary look the first step is to rough up the bricks surface with a heavy grit sand paper, then using white Thin set either premixed or bagged and plaster the brick smooth. (adding a little chopped fiberglass in the 1st coat in the mix will reduce cracking.) I like the last suggestion about the soapstone since it can be worked with standard wood working tools, for around the firebox. I would size the soapstone so that it will = the size of the large screen tv. ( I'd mount the TV to the right of the fireplace soap stone so the the the TV is no lower than the top of the soapstone firebox trim. The margin on the left side of the firebox trim and on the right side of the TV should be equal. (The TV should have a wall mount that allows you to angle it not just lye flat.) On the curb I would build two or three custom seat cushions that over hang the bench. (use can use plywood base with two holes near the back edge of each to set on a couple of masonry nails set in to catch the holes and hold the cushions in place.) The one in front of the fireplace just gets removed when you are using it.

You can easily sheetrock the fireplace then add a modern mantel or more modern tile or stone surrounding it...You can also reduce the size of the step to only around the fireplace. I would not remove it altogether it would just look odd. Check the local codes on materials...but sheetrock would be an inexpensive solution and a non committal one. If you want to change it up again it would be easy.

Sometimes I just like to play around in photoshop to get a rough idea of how something would look. I thought it would be fun to look at ideas for your project. I can't say how feasible these are- anything can happen in photoshop! But maybe this will help you visualize. The pic with the wall built out flat- I have doubts to how feasible that is. I don't know that your fireplace would work properly if it was built out deeper and I don't know that you would have enough depth for the woodbox. It also seems to crowd the door a lot to build the whole wall out. The other pics show your brick painted with a ledge added and your brick plastered, painted, with a ledge added. (I just grabbed some photos off the net of items to give an idea how they might look, replace in your mind with your own style.)

WOW!! All these comments are great .. thank you, thank you! I love the mock-up of the fireplace in photoshop. I'm now rethinking our original approach based on all the feedback - keep it simple, keep it clean and keep the hearth step! One other question ... just for fun (not sure if it's even do-able) ... what about a floating hearth?

After reviewing all your options, you might consider moving the door...just to get traffic away from the hearth. Also consider sandblasting the paint off to see if you like the brick. I like previous comments about smooth stucco or stone facing since that is more contemporary and seems to fit the architecture.

A follow-up comment. Another thought on the wall decor for this space is making the text in the image distressed and adding a splash of a warm color to accent the fire. A more modern glass burning fire would be a nice touch.

I would facade it with either the smooth stucco you like, like in the inspiration photo or the nice beige or grey thinslate stones they often use in bathrooms - free form, not actual form. You could also reface it with glass tile - which is what I suggest....modern, sleek and brilliant looking.

In the picture, the orange would be built-on that would mimic the blue but it would face out to the left. The mantle would wrap around and connect both the orange and the blue. It would be a great spot for extra serving dishes or what nots. You can even build a folddown table top behind some doors so when you have a lot of guests, you can open the doors, pop up the table top for serving table and the top would rest on the door tops when you slightly angle the doors closed. (The table top would install above the doors with hinge cuts so that it collapses down and into the doors to hide.

The blue cabinet is for you to design, everyones taste is different. But the area thats shaded, since its an awkward angle and to gain most of the other area, you should leave skinny and angled for outdoor supplies to the door next to it....ie mittens/hats at the top, maybe put a bootmat inside the bottom of the cabinet with either shelves in between for other supplies or a small coatrack. I would also make any doors the lucite which is sleek and comes in varying of colors and they slide, open or lift up - depending on which you like. [Like these doors: http://www.ikea.com/us/en/catalog/products/S89894237]

[The color block image is "top view"]

Have a peek at this ...

Wow, you got so many great suggestions! Here is my contribution:
To achieve a contemporary look I suggest getting rid of the existing hearth.
Here are three fireplaces I bult in three different remodels. They would all work well with your firebox, and can be made easily for a very reasonable budget. In one of these projects the hearth is floating, in the other two we just installed the stone flush with the floor. Eliminating the hearth saves a lot of space. Good Luck!

Your fireplace wall is modern and clean... i say embrace it. The photoshop suggestions could be the finishing touches and children learn quickly.

What about "ignoring" the fireplace? In lanscape design, sometimes the best way to de-emphasize an immovable eyesore is to just add a beautiful focal point nearby to draw the eye and divert attention. The fireplace will disappear, sort of, if there is something smashing on that wall to please the eye!
Re your inspiration photo: We heat with wood all winter long. Those contemporary wood boxes built into the wall always crack me up. Wood is dirty, messy, irregular in size, etc. It will NEVER look like the photo unless 1.) you fill it once and then don't touch it all season or 2.) you have a very patient somewhat OCD person in the household to replenish it all the time, carefully, piece by piece, and then drag out the vacuum cleaner when they are done. Seems to me that would discourage you from using it after awhile. Even a modest free-standing wood box of some sort would be more user friendly, IMO, so you can bring in a bundle and just drop it in. It depends on how much wood you go through where you live.

Check out our ideabook on fireplaces- in case one appeals to you.
http://www.houzz.com/ideabooks/1465995/thumbs/FORMA-Design-Fireplaces

I've seen a lot of good suggestions, but I haven't seen anyone address the need for electricity should you decide to do a TV mount. If you used 1" furring strips and carefully chipped into the existing fireplace so an electrical box will mount, you can then cover the upper portion with sheetrock, and finish it to match the walls in the rest of the room.

I had a similar problem as far as the look a few years ago, and here's what I ended up doing. We removed the raised hearth, covered the brick with sheetrock and built a wainscot and mantel surround. Utilizing remnants of granite from our kitchen counter tops, we put a granite finish on the top of the mantel, and below forming a hearth to catch any embers that may pop out of the fireplace. I then made the fireplace a focal point using a dark green to contrast the latte walls and the brilliant white of the mantel and wainscot.

I like the clean negative space of your fireplace! Paint the white brick an accent color or soft neutral like grey or taupe...add a great piece of large scale art to the right of the firebox if you need to break it up. Allow the surrounding walls to have energy with artwork or shelving so you fireplace becomes an area for the eye to rest....

I would keep the step. It looks like about the right height for kid to play on and jump off of without getting hurt. Put a soft rubber cushion under it while they are still little so they don't hurt themselves when jumping off of it. In 6 months you probably won't need it.
Repaint the interior of the fireplace black. If you want to make it look longer and narrower, do it visually with fireplace framing that is wider on the sides and half that size on the top (2 to 1 ratio works), it would probably work best with a black frame. I have also found that with a gas fireplace, the fireplace stones, instead of logs, looks very contemporary.

https://www.houzz.com/discussions/need-help-w-refacing-this-fireplace-wall-dsvw-vd~227044

https://www.houzz.com/discussions/i-need-help-with-my-awkward-livingroom-dsvw-vd~221391

We had the same fireplace with the exact same white slump block. Here's what we did (see pics). We added 12x24 limestone looking (porcelain) tiles with a horizontal staggered pattern. That same theme was also carried out on in the shower and the floors.

Lots of great ideas here. However, if you want to keep the wood burning fireplace you will need the hearth. Your insurance company will not cover you if you are not up to code. An option is to install a gas insert, like these