Sure, seen it before, but need to coordinate the colors.

Absolutely.

Should the brick come all the way down the window sides?

Stucco color is a light grey brown

It may look like eyebrows if you don't bring it all the way down.

Stucco color is oyster shell by Pittsburgh Paint

I would not bring the brick further down the sides as it would be too heavy for the size of the windows. It is good as it is. I'm assuming that the stucco will be on the inner portion of the arch?

Would it look better all limestone? Worried the brick look is too much.

http://www.bing.com/images/search?q=Precast+Window+Trim&FORM=IQFRDR I tend to agree. I would have you consider precast white concrete or cement coated foam trim.
http://www.bing.com/images/search?q=images+of+concrete+foam+trim&view=detail&id=DE18BC9F4F568A16B53B2C824BF1335F3E3EEEEA&first=975

In Italy, stone and brick was used together. Brick was used where closer tolerances were needed, like a window, a door frame. even though your home looks more formal, check out a book called Italian Rustic by E. Minchilli, there is a section on windows, but throughout the book, you'll see how brick was used.

Here's some photos with stone and brick combinations you can check out. Very common to get them mixed together.

http://www.flickr.com/photos/buechelstone/sets/72157626640764781/

I liked the contrast very much. If it is looking unbalanced consider extending the width of the brick sill to balance the upper detail.

Ok...so my gut was telling me no on this...so I'm pulling it off, and doing a decorative arch in limestone. Finishing with dark stained shutters. I'll load a finish pic when done. THANKS FOR ALL THE FEEDBACK!!

Go with your gut - it's your house and you've got to love it! Would be good to see the finished job.

I think it looks unbalanced because the brickwork extends too far down and the hood bracket should be stucco or limestone. Also the brick may be a bit wide for the window and the sill not heavy and wide enough. The workmanship looks very good though. If you look at old buildings you can see how they did it.

Of course going with limestone is classic.

I like it! It's very pretty!

Better. Are the shutters going to function? That would look great!

Thanks...yes...definitely functioning shutters...looks so much better

Looks good. Some attractive shutters here on Houzz PHOTOS for arched windows. Take a look.

Looking good. It's a shame to have to undo work but you have made the right call.

Much better!