Are you planning a wood burning or gas fireplace? If wood burning this one seems like a great option for linear without being too modern - we looked at it but concluded we needed more height (and we're not dealing with the constraint of a t.v. over the fireplace, as we're generally not a fan of that, aesthetically or functionally). http://www.heatilator.com/Products/Longmire-Wood-Fireplace.aspx That said, I would really consider an arrangement as in your first photo, with the t.v. next to the fireplace.

Bev, I like the style of those bookshelves. They are unique and a possibility. Claire, I love the rug suggestions but we spent most of our budget on carpet and paint and a hundred small things that needed to be replaced. decoenthusiaste, I think you are right about the man cave sofas! hmmm, I hadn't thought of that but I agree with you. There is just a dining nook in this house so no room to move the china cabinet. I have thought of replacing it with a buffet height piece so that it doesn't overwhelm the space. I doubt that hubby will want to move the TV or replace his beloved recliners. I have had nice art on the mantle but the brick is so busy, art competes with it. Loving your ideas! Thank you.

I don't know about "modern ", but I have seen a TV stand/fireplace in use and I thought it looked fine. If you don't want the expense and mess of a real fireplace that's the way you should go. If you have a chimney built and a real fireplace installed it's going to be expensive, and not something I would do on a whim. I agree about a TV being at eye level. I'm sure someone will tell you to rip a hole in the wall and install a fireplace, but I wouldn't do it, especially if you don't plan to live in that house for many years.

We have a frame TV over our fireplace. As long as you have a way to run the cable so it's unobtrusive, it looks just like a piece of art. We bought the frame (which needs to be purchased separately) from deco frames. Don't put a huge TV there unless you don't care about proportion. If you are keeping the hearth, I would try to get brick to match. If you don't have a tech tube, create something above the fireplace to run cables (shiplap/paneling).