I would paint the brick white and make mantle larger. I would also change out the fireplace cover.

Roman brick from the 50's. It is growing into you wall along with the mantel. Paint will help, the wood trim on
the lower part of the mantel needs to go by by. You can add a 4" corbel which will add some dimension to the
mantel. With the wonderful area rug, I think a cream on the brick, the hearth seat and the fireplace screen paint
black. Not knowing what the wood trim may be, matching the mantel and corbels should work.
Fireplace screen come in many styles and price and meet many needs. If you don't use the fireplace and
want to add to you budget, the black glass covers are very nice.

I actually like the brick (usually I think brick fireplaces should be painted but this looks more like stacked stone). The only down side I see to the brick is its similarity to the wood paneling on the walls... they sort of merge together.

Two things I'd do right away are (1) paint the mantle a bright, clean color (white probably), and (2) remove the old surround. Is it absolutely necessary? You could have the inside of the fireplace painted a dark, crisp color, and add an interesting screen in front.

I love tile around a fireplace, and that could inject some fresh color. But the only place that seems like a good (easy) candidate is the ledge. This pic isn't a match to your fireplace style idea but check out the floor...

HI -- The brick is fine - I like it and that's NOT what's dated . The mantel is very 50's kitch , so I would remove that . I don't think you should paint the brick at all. I would either put on a more modern chunky beam mantel but would rather see NO mantel . And also remove the molding on the top - too much contrast . And keep the fireplace décor limited. Perhaps replace the hearth top with a nice black granite . Think about removing the old wood paneling too. Very high fire hazard and it is also very dated looking . Love the red vase and the painting but not the other things (too many small items).Add a glossy black sculpture to balance the black picture frame and go with your rug. There are nice modern style fire screens now that would up date the look too.

The stone is beautiful. The most dated things are - the scallop trim under the mantel, the bronze/brass door insert - and the unpainted light pine paneling. Mantel - I would take it apart and put the mantel back without the scallop element - possibly take all the structure off, and add new wood brackets (not corbels) - they sell them at pro wood market online or see your local wood supply. Insert can be masked and sprayed out with high heat black spray paint and put back in.

Since this lovely stone, in a beautiful taupe (gray brown) is elsewhere in your home, allow me to suggest that you paint the paneling - yes, you will have to put a primer coat on first and touch up all the knots, but the result will be neutral and fresh. A light taupe / platinum gray like http://www.sherwin-williams.com/homeowners/color/find-and-explore-colors/paint-colors-by-family/SW6071-popular-gray/ would add so much light to your room. I found this card because i think that this range is closest to the stone itself - grab a paint chip for mega greige and see if I got that right. I would use the deepest color for a glossy tone on the mantel and new brackets (2 brackets only 1/3 across) - that is called turkish coffee http://www.sherwin-williams.com/homeowners/color/find-and-explore-colors/paint-colors-by-family/SW6076-turkish-coffee/ - or gel stain them espresso.

Of course, you can use any shade on the card and it will coordinate if you want whiter trim or deeper wall tone.