The problem now is that the fireplace is the main thing popping in the room. I would paint the walls the same predominant grey color as the stone. The stone will blend in more and stick out less. Then if you have the budget, get furniture in a color that contrasts the walls - black or burgundy. The furniture will pop and the stone will blend in making the eye gravitate less towards the stone and more around the rest of the room. A nice large, green plant in the corner to the right of the stone would be a good final touch and way to draw the eye from the fireplace.

At least the stone is a really beautiful color.

I would not paint the stone. I don't think it will look nice.

I agree with painting the walls in grey. Built in shelves on either side of the fireplace could be great as well.

Right now that yellow-tan paint is making the red in your wood really strong. What this does is make the cool-gray in your stone look very out of place, which makes it stand out.

As Kendrah said, paint the walls a gray so that it doesn't stand out as much. You could also look into getting a mantel for it.

And a large piece of colorful art over fireplace to draw attention to.

I don't think the fireplace looks that dated. Agree with others that the paint color makes it stand out a bit more. I think a chunky mantel would look good.

Thank you all for your feedback and recommendations. We really didn't think about a new paint color for the walls. I think the challenge now is to find a nice color that both myself and my wife like :-) - Thanks again...

^^ Yes, or Grey Owl.