If I never used it and lived in a climate that doesn't need a fireplace, then I wouldn't think twice about ripping it out to have more windows and space in this eat-in area.

We built in FL and did not put in a fireplace. Didn't make sense, for us, to waste floor space and money on something we would never use.

I agree with chispa add more windows or even cupboards if needed

Your house is lovely! Are there any other fireplaces? I’d hate to remove the only one, considering resale.

Why don't you try using the fireplace just to see if you like it?

More house photos, please. Imlike the fact you have embaced this as a dining space instead of typical cram everything in for a family room. Since this is so huge you will need to take out fireplace, chimney, reconstruct exterior and interior wall - yike$. Try ruding the hearth to a floor level hearth and reduce the size and shape of the mantel, a simple narrow natural wood mantels would serve this well. If fireplace is woodburning, change to a gas insert or electric fireplace which might be more amenable to using. All options contain a measure if yike$!
We have foregone a fireplace in our recent home purchase. Built in 1988 in a lake community no fireplace was installed and I find it so much easier for furniture placement, TV, and large patio doors.

It all depends on whether the FP vents through the back or the roof.

If it vents out the back wall it will be fairly easy to remove and then patch

If it doesn't through the roof, taking down a chimney is $$$, and patching the roof is $$$$. Taking the chimney out may require reroofing. Are you prepared for that expense?

I'd lose the firepplace and flatten the wall (depending on complexity involved).

I'd also flatten the breakfast bar and make that into a one-level island which would open up the room.

And you will have to try and match your flooring if you remove it, too.

We are replacing the flooring so that is OK

Dump the fireplace. Windows will always be popular.