It would be interesting to hear some opinions on this. I LOVE the look of white painted brick (not thick and stark, more like a dry brush technique), but am just too chicken to do it myself. I recently had a brick fireplace wall in our home sheetrocked, leaving only as much brick as I wanted to see. Supposedly I'm protecting the rest of the brick should I ever change my mind. How about if you leave some brick in it's current state and paint the rest? Like the brick over the mantel in the center could be painted, but around the over is kept natural. Look at Houzz Ideabooks!

embrace the expanse of brick! Brighten the area with pottery, cookware, kitchen electrics, all in bright colors, maybe some in copper. Painting the wood in a shade
of creamy white might lighten the space. The room looks as if it needs more lighting, too.

I love Marianette's idea...don't forget some plants!

clean the brick and put a clear mat finish on it that makes the colors stand out. I can't think of the name of it, but it's out there. Agree, paint the wood and do something to bring in more natural light and maybe pot lites above in the shelves. Plants and colorful but useful bowls, plates etc...

I saw an episode on Dear Geniveive (sp?) where she placed beautiful tile in the back of the open spaces in the Fire Place surround. It was really pretty and you could probably find in on HGTV. It was so pretty! Beef up the mantel and whatever other people suggest...

I love this just the way it is. Lighting will help to showcase this beautiful wall

I think I would first think about the functionality of that area. Can you use it for other things, like a computer niche, or serving area. Space is a premium in most homes. Then once you decided what you want to use the space for that will dictate how you go about renovating or restyling it. Think about what you really need in your kitchen and them retro fit this area. I love brick (painted & not painted), so to me those are a matter of taste. I would start with functionality. M.

I agree that lighting is priority in this space. Wrought iron fixtures would be beautiful.
What colour is your cabinetry? It's difficult to say for certain without seeing the rest of the space. However, if you decide to whitewash the fireplace I think a creamy white or dark stain would be beautiful for the wood. I like the look of mixing colours for wood ~ white/antique white cabinets - dark mantel, dark cabinets - white mantel. Your possibilities are endless!

PLEASE try tmnichol's idea of cleaning and sealing the bricks, and also wash the wall with lighting before you paint over the bricks or wood. modernize by filling niches with smooth white ceramic pieces. the bricks are busy enough. you do not need more texture. if that doesnt bowl you over, then you can try paint. please keep us posted!

Since we can't see the rest of the room, it is difficult to comment accurately. Much depends on your trim color, flooring, walls, etc...That said, there is a lot going on with the fireplace wall already. With so many niches, shelves, etc... Your accessories should be very simple, so as not to clutter it further. Is this a wood burner? Where is the actual firebox opening? Is it under the arch opening? If the large opening to the right is a log box, I would stack this opening with logs. A large single picture or iron sculpture above the mantle would work well. Baskets, copper pots, colorful ceramics, would brighten the space.
Looks like you have some terra cotta tile as trim on the fireplace and in the niches. Painting the trim white would just fight with this look, so I would just
leave it the pine color, unless you already have white trim in the room. You do
need to add much needed lighting to the area.
Not knowing your style, it is difficult to comment. You can paint the brick white, but you still have the terra cotta tile to deal with. It may be able to be replaced with another material. Consult a tile/brick expert for details. Lots of options here.

definitely paint it with a soft white paint that will withstand the traffic. you will be amazed at the uplift in your spirit when you walk in the room. paint all of it soft white and add color thru the use of pottery or other ceramics. paint one of the walls in the kitchen a bright color!

What a fantastic discussion this has become! SO many great ideas--cool cat, I hope you've been completely inspired!

Definitely try cleaning the brick with TSP to see if it is just dirty and dingy. Then if you still don't like the color, you can paint the bricks another brick color if you like. I painted our previously painted fireplace to look like brown bricks: http://www.prettyhandygirl.com/2010/08/painting-brick-fireplace-from-white-to.html

Thank you so much to everybody! Each one gave me a precious advice and shared with me their ideas. It's true the pic. didn't come out well, don't have a good cam, need to get a better one ;) I must admit that I didn't pull up the shades also!hehehe :) I still have to start remodeling in the kitchen and also in the rest of the house, as there came out some inexpected problems that needs to be resolved first. Here's a picture of the kicthen as you can see there's also a stair that takes you down to the basement.
There's alot to do but it doesn't scare me, just hope to start soon!
Thanks again, a big hug to everbody!

I'm posting also the plant of the house, it's in italian, but it's simple to understand. here's the translation for the rooms:
Cucina: kitchen
Bagno: bathroom
Soggiorno: livingroom
Pranzo: Dining room
Rip: Pantry
terrazzo: terrace
Letto:bedroom
Spogliatoio: walk in closet
Cantina: basement

If you are up for it, sometimes simple is so much more, paint the wood in all the niches a nice white. This will update and yet be understated and will make the old brick pop.

It appears to me that the plan indicates that the wall you are showing us is actually in the dining room. Perhaps the west wall if the plan is shown with north up. However, the plan does not show the depth of the fireplace. I would leave the wall as is and stucco the walls around this wall, adding an oldworld texture. Using a butter cream color to warm up the space. Use a dark wood floor to bring out the old world italian feel of the brick. If you do want to change up the wall a bit you could bac the niches with and neutral color tile that would then be repeated on the backspash of your cabinets. Go on the internet or on this site and check out old world Italian kitchens. I think this would help. Put a large garden grate on the large void area of brick, use plants and pottery in colors you like when doing final decorations. I would do cabinets in a lighter color that are distressed and have a lot of old world detail with a stain over the top to fill in the distress marks. Do granite countertops in a neutral color as well and dark bronze fixtures. Have someone come in and add more detail to the railing on the stair and again have it a antiqued dark bronze color. Use light fixtures in the bronze. It looks like the room is narrow so use a long heavey wood wood plank (reclaimed beams) dining table top with ornate wood legs and use benches or old world style chairs with creams and deep red fabric. That should give you a start.

rlchick is spot on!!!!! embrace the "bones" of your incredible home and you will fall in love.

Richick, your ideas are fantastic! You hit exactley the style I'm lookin' for!
Yes the firplace is the wall in the dinning room, the floors are in Florintine Terracotta so it haves a dark red brick color. I was thinking on a built-in kitchen with cream color cabinets. Thank you for your advice :))