I've used Brick-anew on a couple of fireplaces and have found it to be a great solution for ugly brick. The reason I've used it more than once is because the 'painted brick' comes out looking like real brick. I was a little apprehensive the first time I used it and was thinking that it sounded too good to be true, but found that my fireplaces turned out much better than I had hoped for and it really does look like real brick. Everyone I have recommended it to has been very happy. Hope this helps - It is sure easier and cheaper than other fireplace remodeling solutions. Good Luck! Here is a link that might be useful: Brick Paint

No problem covering the brick if it is sound but there are codes governing how close combustible materials can be to it at different distances from the firebox. Where it is close to the firebox opening (see local code) it must be as thin as possible (like 3/4" tile, granite etc) in order to not change the firebox design much and non combustible. The finish wall surface can be farther out where it is beyond the required noncombustible surround (see code).

Why not? I've certainly seen it. I think if you do do this, you should consider putting a floor level tile or brick paver (if you can match) hearth instead of running wood all the way. Technically it WILL work. It has been done. It will save you that space.The raised-fireplace-sans-hearth thing may be not the best aesthetic chioce for your room/ brick fireplace/ architecture. I'd think about how it'd look w/ some changes- consider maybe replacing the fireplace screen and/or finishing around the screen w/ some kind of detail- inset rock or tile maybe. It's hard to say without looking at the fireplace in relation to your living space.

I would also tear off that mantel. If a new stone veneer is not an option, at least paint the bricks the same color as the walls in the room. Finally, put some edging or moulding on the top and side. What a great place to hang one big clock!