As is, it appears to coordinate well with your tile floors; I think if you paint it white and grey your floors will stand out in an unflattering manner. What you have now is a warm, visually interesting design. Consider leaving the fireplace alone and painting your walls a darker taupe/fawn color instead. Hang something above the mantle, fill the shelves with books and memories. Live with it a few years and see whether or not it still bugs you.

I was going to suggest just what Marta did. The shelves at the sides look a bit odd, where the left one has a vent over it and therefore no 'top' board like on the right side.

i'm thinking like Marta. i dislike that the shelving design is awkward around the vent on the ceiling... there is a top piece on one side, not on the other.

but removing the shelving completely leaves the mantel hanging in mid air.

if you are clever, i'd remove the shelving above the mantel, leave the mantel alone its full width. you'll have cut ends to deal with those can be sanded and attempted stained to match. removing the upper shelving will highlight the diagonal wood, (for better or worse), but i think it has the potential to be attractive without the over-done upper shelves.

Remove the DIY shelving and diagonal wood panel. Lighten just the mortar between the stones with lighter paint (not stark blinking white). Match the color of the lightest stones to the new mortar paint. You can try out the look of lighter mortar with a few yards of regular beige masking tape.

I was going to suggest what liz_fb wrote. Paint out the entire surround with the same color (the color of the grout?) I would NOT remove the shelves because it would make the hearth look way out of proportion to the remaining center.

I would white wash.

Bluegums, Frankston South, Victoria · More Info

If the white wash was a well done as celerygirls picture, MAYBE. Stones have variety, color and texture. Painting is not indicated ever. I am afraid it will look milk toast and odd. The side "shelving" looks like it is shallow, made for a collection of some sort and a rustic one at that. Unless you have such a collection I would just remove it. The back of the chimney is designed and that look is specific to the rough ship lap that is there. I would leave it as it or it too will look out of place. Wrong choice for that application. I would not cover up the vent by adding "the missing" piece of the shelving.

In my opinion, the wood is the best feature. I wouldn't change it at all. If this whole area were well styled, it could look fabulous as is.

I really like liz_fb mock-up. A large piece of art and a few objects with the container baskets looks really good. That change would also be the least risky.