Actually this is quite a cool tile! Would you like to go monochrome and modern. This would work beautifully if you ligthened the wood panelling above to a pale grey/washed wood and then did the walls in taupe.

As designers we like to look at the holistic solution: "fixing" the fireplace might cause knock on design problems elsewhere;, so the more we know the more we can look at the big picture the more likely we are to find a solution that works for the whole room.