Have you compared the costs of both options? That in mind, consider your ideal use of and layout for the space, and balance the two against eachother.

I think you have already decided looking at the way the seating in this room is turning its back on the fireplace!

I had a massive red brick fire place in my living room (floor to ceiling). I wanted to paint it or white wash it, but discovered that it wasn't actually brick but a faux brick cover about 3/4" thick. I was able to remove that, drywall the fireplace and rework it slightly to make it smaller looking and less awkward in the room. The cost for drywall and materials was minimal compared to complete removal or replacing the entire fireplace with new brick. We drywalled everything except the space from the mantel down which we recovered in a more modern and neutral brick. You may consider asking the help of an interior designer for assistance with placement of furniture in the room in order to make it work for you. Fireplace can add value to your home. Good luck!

Would you use the fireplace if it worked? I know gas fireplaces can be very efficient in heating a home, and if yours would, you should factor that into your decision. We heat most of our house with a pellet stove so I know it can be done.

I was asked to do a similar project by one of my clients. As a decorative painter, I was asked to KEEP the brick and re-finish, or to have it completely demolished.
I suggested to drywall the fireplace, and apply a finish to it. The client decided a venetian plaster. The transformation was simply amazing. The project took me about 2 1/2 days from start to finish and it was very affordable compared to tearing everything out, and start all over again

Thanks for the comments. Our TV is currently on the opposite wall, so that's why the furniture faces that way. We tried it above the fireplace and it was too high to watch comfortably and not easy to mount, hide cables, etc. I think we're going to have to try the TV on the right-side wall and dry wall the poorly placed window (which looks into an enclosed hot tub room--that's the next project!).

I'd repair it, and rearrange the room making it more of a focal point, but I'd probably do something with that built in in the corner to make it a bit more retro modern. On the plus side if you replace the insert and later decide to redo the fireplace you could still use your new insert.

I would built right over it ,keeping the fireplace.This is a job I'm still working on. They had an awkward fireplace and didn't like the brick.

I'd tear it down and make it smaller. It's big and overwhelming also dated looking. We stared over with ours & put tv above and love it! Here's before & after

I think that is such a Great Wall! Maybe paint it white to make it look different. I don't think it's needed to spend the money on a costly deconstruction. A few cans of paint should do the trick

I would get new realistic gas logs and fix whatever the problem is (love, love, love ours!). Then I would consider painting it white and putting a few logs in the unique log holder (love how it mirrors the window!). This is Ellen and Portia's fireplace which has some similarities.

Personally, I love your fireplace and I would change the glass but if you are looking to update your space, revamping your fireplace would have a huge impact. Check out my "Fireplace" board on Pinterest if you need some inspiration or ideas

http://www.pinterest.com/bryghtcom/fireplaces/

Happy Decorating!

I almost bought a house with that type of fireplace. I loved it. They had painted it a pale grey and added a wraparound mantel. I would have probably repainted it a creamy white.

The look is typical mid century modern - still in revival mode and works well with an eclectic decor style.

All that said, if you don't like the fireplace now, it isn't likely that you will like it any better painted or refaced. Although you might like it better if you placed a large painting over the wood storage area.

Never mind my comment about putting a painting over wood storage. I was thinking that ws higher up. Reviewing the picture again, if there was a way to remove the brick mantel, and somehow downplay or restyle to octagon shaped window...

A fireplace is a very welcoming thing in a home.... I would get it repaired or replace the gas unit. Then, I would make it a focal point rather than turn away from it...

Thanks for all the comments! I like the fireplace and we're excited to get it working; it's just been tricky to arrange the room around it. I think we'll replace the insert and think about rearranging furniture--and maybe paint the built-in white or black.

If you're looking for fireplace ideas we are custom metalwork shop specializing in fireplaces, doors, mantels, and surrounds and can put together some ideas for you. In the meantime here are some photos to get your started...