Paint the brick and replace the hearth.

Strip the white off the built in shelves and woodwork under the arch. The lovely brick will no longer look like a sore thumb.

You can put a decorative screen in front of the opening, and/or a candle arrangement inside that would be more attractive than the fake logs. Do you have another place to watch tv? The tv is too big for the space, as is the ottoman. I would paint the brick white, use masonry primer and paint, and it will be a bit of a chore getting between the bricks. Good idea to tile over the hearth, a gray slate or stone look tile will be perfect.

Unless you absolutely, truly love it, consider tearing out the fireplace. It’s non functional and somewhat if an eyesore to you. I took out a fireplace and it gave me an entire blank wall and changed everything. Well worth it and not expensive.

Not sure what you mean by "decorative." The home looks like an older one, and that combined with the built-ins and the bump-out above (which looks like a flue) kind of makes me think that it's original to the house and a working fireplace when built. So I wouldn't tear it out, but then again I happen to love fireplaces.

First off, try to paint the brick--that would be the easiest and least disruptive. Then if you still don't like it, you could take it out.

I would paint it to match the cabinets since it does not function anyway. I do not love fake FPs but in our old house I used the space for a funky piece of sculpture . ripping it out would allow the TV to be hung at the proper viewing height .

The fireplace, flanking builtins, arched opening & half wall are craftsman details likely original to the house. The brick work is decorative & adds interest to the room/house. Working with & saving these details will give the room/house uniqueness & interest difficult to achieve otherwise. The room looks comfy & inviting as is.

Here's an example showing the bricks and hearth painted white with a glass door and some birch logs.

Mockup By: FireplaceTreatments.com

Wow that’s a big improvement!

It’s always fun to play around with AI to get some ideas as well

The fireplace and bookshelf set up is a really classic and beautiful look. The huge ottoman and massive TV above are going to detract from that look no matter what. I'd think about where else to place the TV and ottoman. Then paint the bricks white - or another color, and retile the hearth.

Here is a good Emily Henderson blog post about picking the right hearth tile for a craftsman fireplace that looks much like yours.

https://stylebyemilyhenderson.com/blog/saras-house-fireplace-design-agony-fireplace-tile

I don't think the problem is the fireplace. The problem is the white in the rest of the room. I don't have software to play around with colors, but what about painting the mantle and bookcases some color that ties in with the fireplace instead of painting the fireplace white?