the fireplace is already a pretty big statement piece. You could try sanding the wood down and giving it a stain that matches your new color scheme or a whitewash, and place most of your decorations on that wall (photos, etc...)

Would you keep that focal wall the same color as the surrounding walls?

What are you replacing the floor with? That will make a difference.

Carpet, light, neutral.

Normally I'm anti-painting for these situations, but this is an exception. Remove or drywall over the T&G and paint out all the walls in a grey toned color to counteract the red/pink of the fireplace. Another opportunity here would be to color wash the stone - not to be confused with painting over however. Again I would normally never suggest this, but the pinkish stone is a tough one! That combined with the dominant scale of this thing also. A grayed wash would do a lot to tone this thing down.

HI -- I would remove the wood on that wall , it takes away from the beams . It is a very dated style of the wood being angled . There is already a lot going on with that fireplace . If I had this room I would also remove that too large fireplace and put a smaller more modern one centered to the wall. There is just too many textures and lines and colors go on for one room. I would get rid of everything and just keep the beams . Then pick just one paint color like a nice neutral ,maybe a warm white for the whole room.

Depending on what you're doing with the floor, I might stain all the wood to match the beams, paint walls and ceiling all the same to match the stone.

No money in the budget to remove the fireplace although I do think that's a great idea. I absolutely agree with the gray color to counteract the pink, I just didn't know which color would counteract it the best. How do you do a gray wash? Is that something they could tell me at Sherwin-Williams, Benjamin Moore?

I think you should leave the colour of the fireplace be. I'd take down the wood wall and I'd add a mantle to the fireplace with the same weight as your ceiling beams. Here's what it might look like with your current paint colour:

and a darker green

a taupe

and just for fun, a mauve

HI -- When you get the wood removed then paint the wall and the stone fireplace all the same color , like a medium dark grey or better would be a warm white for that wall and the whole room. Putting a paint wash on that stone does not work because of all the colors of the stone . Use a washable flat paint or a pearl . Also remove that wood strip on the right wall .