The brick extends past the bookshelves on both sides.

HI -- Looks like the funky 70's . I don't mind the brick -- it's not offensive. What about making the side cabinets closed storage and painting the cabinets and the mantel a very dark /charcoal /black or taupe , matching the dark color in the brick. Then adding pot lights across or a track light system across to light up that whole wall . Or if you don't like the brick , then paint the whole thing a warm white -brick ,closed cabinets and all. Clean and modern and fresh looking . They did this in a place shown on Houseandhome.com , I think . Or you could remove those cabinets and just have a pair of console cabinets on each side with glass shelves or paintings above .

Thanks lefty I like your ideas. I have to take into account the wall that extends from the left side of fire place has two windows. andt The wall from the right end is approximately 2ft before it opens into an open dining area ant the opposite would have a classic 70's mirrored wet bar . Its a nightmare for me who looks so hard for balance,

I'm wondering... the brick is probably behind the bookcases too, right? How are they attached. Maybe you could tear them off and then paint all of the brick. I really am having more of an issue with the dated bathroom light fixture above the FP and the antique fan and lights.

Thats great your comment made my husband realize that even though it works, it still needs to be replaced.
This house is a poster child for worst design ideaes of the late 70's and 80's. My hats off to anyone who dares to take it on, If I was smart I would throw in the towel and hire someone,
However, I will have a lot of fun and feel good after its done.

Work with what you have. A nice pic or large clock above the fireplace? TV?
Replace the light over the FP with a canned light.
"Stage" the bookshelves.
Replace the handles with more modern ones.
Replace the ceiling fan globes or light kit.
Take down the mirrors in the wet bar. Transform it into a coffee bar or take out cabinets and make into a small office or place for kids to study.

Place furniture to facilitate what you are going to do in the room use area rug(s) to define "areas".

Oh and if you like rustic you might stack wood logs floor to ceiling on the outside bricked areas or take doors off the bottom cabinets and stack in there.

HI - Shannon -- Yes , the 70's and 80's were the worst design time . I think you should go for it and change the fireplace wall totally . You could get a hammer drill and remove all that brick if your up for the hard work . Took my brother in law about 2 hours to do his ,that was like yours. Too much for the room . Or you could clad the fireplace in a nice stacked ledge stone (hire someone for this) or tile and then cover over the side walls with wood or drywall . Some nice wood like a walnut or mahogany or reclaimed weathered wood . If you do the drywall then you could just paint it or add some molding detail and paint it . If you clad it in a stone or tile maybe not have a mantel for a modern clean look . Or cover the side walls and just paint the brick . Any of this will hide the extra brick for a more up dated look . All depends on your style .