This is an inspiration photo minus the corbels and with the addition of the cement tile.

The kitchen is adjoining.

My concern with both shiplap and the cement tile is that they may quickly become passe. Also, as your supposed, the patterned tile with the shiplap and beam shelf may be too busy. The shiplap will effectively be a stripe pattern and the tile's pattern below it can clash (not always, but frequently); line mixing stripes and plaid, it can be done, but with great care. If you have your heart set on the shiplap and the tile, what about using it above the mantle with gray subway tile in stack set as the surround, then use the cement tile as the kitchen backsplash?

Would something like this look better? Similar to the 2nd and 3rd photos?

i love the cement tile. don't know how it's passe' since you can find it in the middle east from centuries ago.

for yours, since your tile is busy, go w/less is more. I'd do a reclaimed wood mantle,,,like this design

the shiplap,,,I don't know. depends on what else is going on w/the room. here's how it would look

you could always do some wood trim work,,,,

I'd enjoy looking at that tile for many years but I'd go very white on the painted woodwork. Shilpa doesn't much interest me unless inside a cottage.

these clients chose soapstone for the hearth & surround. They are doing shiplap on the entire wall and encasing the surround with wood & adding a wood mantle

Can you post a photo of what you ended up doing with your fireplace? I am having a similar problem, and would love to see how yours turned out!