I would remove it all, including the floor tile, replace the flooring (weave in to finish the floor).

Once you have it all cleaned up, hang the electric fireplace centered on the wall opening, if you still want it.

The above was my thought as well. You aren't using it. The next owner can open it back if they choose.

Thank you exactly our thoughts so far. Any ideas for trim around the new fireplace on the wall and/or something up the wall to break it up the expanse ??

If you don't use the fireplace remove it altogether instead of replacing it with an electric insert. The cavity will be there behind the wall in case future owners want to open it up again.

Some chimneys are load bearing.... make sure it stays supported when opening up the walll.

Once opened it will look awesome.

other thought. Is it possible to pull the cabinets and sink in the bar lined up with the wall?

That would give a much more cohesive look.

Even cabinets and appliances give a more serene and put together feel.

you might take upper cabinets doors off and have open shelves with a dimable small light from the top ? Just ideas...

Taking out the bar area and enclosing it will make it easier to do an insert. But if you don’t use the fireplace anyway , just close up the area. Let the next owners know the chimney is still intact.

That wall can be wonderful but there’s a lot going on.

Extending the stone on the wall and widening the mantle to match the width of stone on the floor…will give the area more cohesiveness and balance..