Sounds very familiar. We did the same recessed paneling, crown molding, self designed thing, although the carpenter who was building out the wall built it. I agree with ventupete. Do a mock up. Generally speaking, the fireplaces that I find most attractive have the top plate no narrower (top to bottom) than the legs are wide. Same with the surround. Two suggestions. Think hard about the size of the crown molding you will use. We used the molding we used on the wall. I thought it would tie it together. I now believe it is too large for the overall size of the fireplace. Second, I wish we had run a bead across the bottom of the top plate and continuing across the legs, as is usually done with the panelled approach. I thought I was being cool. I now think it looks slightly unbalanced and unfinished. If it sounds as if I don't like what we have, that's not true, but it could have been better. Good luck

Thanks architect! Love that design. I considered a similar layout, but decided to go a different route. Mostly because moving the fireplace down the wall would result in 8-9' of cabinetry on one side. Maybe it would have looked ok, but I wasn't sold on that piece being so LONG. So unfortunately, at this point, fp stays. Womp, womp. Do you have thoughts on where the shelving should stop in relation to the mantel? Does just below seem odd to you? Will cutting the 10' tall wall exactly in half look off?

ontariomom - I didn't see your question yesterday! (I think we may have hit "submit" at the same time.) Can you help me understand why putting them in the side of the woodwork part of the fireplace is less good than on the built-in? my thinking is that personally, I hate looking at the plug from xmas lights. so in my first diagram, the outlet is hidden and really close to where you want to begin the lights. (this is because the length between the plug and the first bulb is always so short.) however, if the outlet is on the outside of the built in, facing a dark corner, I suppose that could be fine if it doesn't bother you. it's up to you! what color will the built ins be? white? wood?

Whats going on with the wall above the shelves? Is it hollow? I cant tell the depth there.Whats the reason you want to keep the mantel? If youre going to do the work, do it to get the look you want. I would dismantle the shelving and build recessed shelves or the floating shelves, like in your inspo, and make the actual fireplace the focal point with maybe large format tiles to the ceiling. As it is now, it looks kind of squat, cutting the wall in half. You may get comments that shelves are dust collectors and on and on but I think they go a long way to bring your style into a room. I would just go for it. My 2c good luck