I would remove the TV, fill the log storage area with logs, paint the entire fireplace area a clay color or a color from the rug, and hang a large vertical picture over the holes left by the TV. Find a new home for the TV.
Carolyn Albert-Kincl, ASID

two additional pictures -

That's not a TV. I would re texture the walls to a Santa Fe finish. No mantel bigger art

interesting note : The original homeowner visited our home and told me this used to be all brick, with a large, open wood-burning fireplace at an angle- so you can see the fire from multiple rooms. Too bad the last owners covered it up.

Ah, silly me! I should have known it was too small to be a TV in 2012!

lol! It's just an old picture we threw up there to cover the whipped-cream plaster look ;)

Agree with changing the color. Not sure what you prefer warm or cool. Scrub off all the soot first before working it up. Agree with filling up your fireplace storage. Larger art would work, however, If you do not have the $$ right now for that. Hang that big picture offset left and two smaller ones on the right. The storage area is so close to the new stove the tightness is hard to avoid but a darker wall will hide that some. :+) Sorry to hear about the last owners covering up something you may have enjoyed. Happens all the time!

PS. A built in storage might be helpful on the right side bottom. Add a little weight and make it work for you as well.

Maybe we should close up the wood - storage hole entirely. It looks really out of whack in these pictures.

I'd be tempted to try and uncover the original FP, but it isn't bad. Agree with CA-KD that you just need to clean and paint it, maybe find a mantel sized like the beams, and put decor on it that is not art or a mirror since the two openings make it a bit unbalanced. Find something interesting like a sculpture, massive candlesticks, etc.

i'd leave the texture as it seems to go on around the corner, and leave the wood bin - fill it with logs....keep the color of the fireplace to work with the rest of the textured walls and its a bit late to add stone with the f/p installed....the face of the f/p would be set-back adn there would need to be allowances for the door swings.....spend your effor on a piece of art for above the firebox, and enjoy the space

Yes---just needs a cleaning, bin filled with logs, and a HUGE painting. CheerS!

you got my back Nat

leave the arched storage hole its quaint.

Would you like some ideas that use stone? Anything is possible to change it up :)!

http://pinterest.com/buechelstone/fireplaces-using-stone/
http://www.flickr.com/photos/buechelstone/sets/72157626765433140/

Thanks :) - whatever we can do to help! For us they're great tools and if we get work from them that's obviously a good thing... but one of our broader goals is to help people get excited about all the uses and beauty you get with a natural product. Thanks again for the reply!