You can add a mantel, face the lower section in stone or tile, do drywall above, or even, a horizontal wood facing. It really just depends upon your style. You really only need 12 inches of non-combustible material at the top and sides, and 18-24 inches at the bottom, depending upon code requirements in your area.

Have you thought about white-washing the brick? It'd probably be a lot easier than removing the brick and might save you some money. I like the look of brick, so I don't necessarily think it needs to go.