I think that for the look you wanted to create, the stones are too far apart. I like the idea of grass and stones, but you'll need to put in more stones and closer together.

Also, the shape of the grassed area is a bit random. Now I'm someone who likes clear lines in the garden, with lots of plants to soften those lines again. So, I'd rather see the circle of the pit repeated around it.

Agreed, the stones should be placed closer to allow for seating around the firepit.

I did a really bad mock-up for you. The black line is an imaginary circle, firepit is the center. Hope it helps you to 'see what I see'.

Good idea about adding more stones...I have a funny situation, there are septic covers in two places on the right near the fence...so, I can't plant anything there. I will get more stones and add some plants to make more of a circle. I thought about putting some kind of a steppable ground cover for fill in around the stones and for some color...

Ah, okay. You'll have to work around those covers. I like the idea of steppable ground cover.

Carolins, I'm assuming your most recent photo is a visual mock-up, not the finished product. First, I would create a solid border around the perimeter of your firepit using the flagstones set tightly. By having the grass touch the firepit wall it may be exposed to too much heat and cause it to brown, or you will have to use a string trimmer to cut it, which usually ends up scalping the grass. Plus it's a bit of a hassle to have to carry in another tool.

Second, the pieces of flagstone look to be too small and not easy to walk on. Unless you're staring down at your feet when you walk, you'll likely be stepping half on a stone and half on grass - which is a tripping hazard. Also, small stones like those usually don't weigh very much, so they have a tendency of tipping/lifting if you happen to step on a corner instead of planting your foot squarely in the middle of the stone, especially if the ground is soft. Around an open fire you don't want anyone tripping or losing their balance. I would suggest going with larger and heavier stones set more closely together.

Here is an image of a project we did with irregular bluestone pieces. The stones are about 1-1/2 inches thick and each stone is set on a base of compacted gravel so they won't tip or move. Once the groundcover fills up the spaces between they will be locked in place to an even greater degree.

Contemporary Landscape by Lake Forest Landscape Architect Architectural Gardens, Inc

the link didn't work for some reason...let's try again

Contemporary Landscape by Lake Forest Landscape Architect Architectural Gardens, Inc

Architectural Gardens, link didn't work twice :-) I'm not the original poster of this dilemma. I made a mock up (a really bad one, I admit) using the photo and elements that are already there, so poster could see that a stronger shape and stones closer together may be more the look she's after.
Your suggestions make a lot of sense!

I appreciate all the suggestions.....I do have 4 Adirondack chairs that I pulled out before taking the photo. I love the look of these stones in this photograph. tx