I'd clean the paneling with TSP (tri-sodium phosphate) rinse, dry, lightly sand, tack off sanding dust, prime with 2 coats primer and then paint with 2 coats of a paint color you love. You can paint the brick (proper prep first) and top the brick mantel with a more detailed wood one. Remove the clock to the kitchen and hang a piece of art 5" above the mantel. Should be no wider than the firebox. Remove the DVD shelf and TV to a non-focal spot as your new wall and FP should hold center stage. If you'll comment and use the Attach Imaged button below the comment box to add pix of the rest of the room, we can find the ideal location for TV/DVD area. It will be well worth the cost of moving the cable to have it in the right spot.

I have two suggestions:

How about painting the fireplace black, in gloss finish and the paneling white, in matte finish?



Or leaving the brick the gray it is and painting the walls a darker gray?