The chimney is functional right now but that tile is plain ugly and just calls attention to the cimney Waht all is vented out that chimeny and do you need the wood burner at all. I built a hge storage cube around our chimney that was just way too expensive to move but I need a to scale floor plan of your space to see if something like that would work Post the plan here in a comment use graph paper and show every window doorways where those lead and all measurements clearly marked . If just the chimeny issue right now IMO cover it in drywall and paint like the walls and remove the wood burner

I would just work around it. The wood stove may come in very handy, especially, if you are where its cold and power goes out. You havent completely moved in yet, it sounds like. Please dont start remodeling until you have lived in the house for 6 months minimum. What you think, you want now, may be entirely different, than what you will want to do 6 months from now. The house looks nice and it looks clean, and very livable. Once you have been in the house, for about 2 months, make notes on what you would like changed, or what is needed to make it more functional for you and your family.