Do you need the fireplace? It would be a great help as a room divider, but in the locations you have it, it really can't function that way. I'm assuming this would be a gas fireplace. Can it be very modern? Or does it have to be more of a traditional fireplace? Some modern fireplaces can be small and can be placed almost anywhere, which may work for you. Part of the issue is the space, once you remove the traffic area, is really a square which then needs to be divided in 2 for the 2 functions. That leaves you only about 9' or 3 meters for each function which is pretty narrow. Plus you need traffic area to get from one function to the other. Candice Olson has done some interesting dining/LR combos. Perhaps one of them will inspire you. Given the size of your area, look at the rooms where she's done a built-in banquette for one side of the dining area as a way to save space.

I agree, no fake fireplace. But you can still do a brick feature wall with a vaulted ceiling and beams and don't need to have a fireplace to pull off a cozy, rustic look. Here are a few examples I found that I think achieve the look and feel without a fireplace. A beautiful brick wall with solid wood mantel and a piece of carefully selected artwork with good lighting can certainly crate a wow factor without the fireplace. Not sure about the curtain here, but love the brick and beams as an example. This one uses the beans vertically and the brick on the ceiling (if the fireplace was out of budget i'm sure this would be too) but at least you can see the options to play with and then scale them to your taste/budget. I love how this one has a great open concept but uses the beams/island to create separation between kitchen/ (and I'm assuming) family room.

Hello Lauren, Marcie here. Yes, this is a challenge. Can you do me a favor and take some more pictures? Please start with your back to the wall that the TV is against and then move around to fireplace to capture your dining room. Please give me the measurements of that space including the area with the shelves on the wall and your dining room. Marcie

The table top in your inspiration pic caught my attention. It's not the usual furniture showroom table top. I really like this cedar "countertop" and was wondering if something like it might work as a table top or as a top of a rolling cart island that could work as kitchen prep space and/or guest dining if not as a table. http://www.devoswoodworking.com/designing-wood-countertops/wane-edges.html Legs could be bought separately. https://carolinalegco.com/products/x-metal-table-legs-set-of-2-modern-industrial-legs-custom-sizes-available?variant=32186224640097&currency=USD&utm_medium=product_sync&utm_source=google&utm_content=sag_organic&utm_campaign=sag_organic&utm_term=&utm_campaign=DR_PLA_Smart_200%25&utm_source=adwords&utm_medium=ppc&hsa_acc=7051262680&hsa_cam=9915659242&hsa_grp=103137792649&hsa_ad=432122759881&hsa_src=u&hsa_tgt=pla-296303633664&hsa_kw=&hsa_mt=&hsa_net=adwords&hsa_ver=3&gclid=EAIaIQobChMI6p_wwNPU6gIVgbbICh0T8w-jEAsYAyABEgIkX_D_BwE