You probably should paint the brick white to match the walls, but remove the current surround entirely and see how it looks. I like the look below, including the hearth. But if it's not for you, paint the brick white to match your walls. Pick a white that harmonizes with your rich wood floors, which won't look as intense once you paint the walls. You may not need to lighten the floor once walls are painted. It's the orange walls throwing off all the colors. Houssan is right about keeping TV where previous owners have it. You could float your sofa (or two armchairs to face the fireplace) with other seating facing the TV. (Layout as below but TV where they have two art works.)

Hi Beth - I’m posting just to keep this current in hopes a pro will help you. As an observer, I find a discrepancy between your mantle and surround (traditional) with the vibe of the wood in the walls. The mantle/surround’s proportions and style seem off and maybe it’s part of what’s making it difficult for you. At first glance, I’d remove it, but that’s just my 2 cents.

I kind of like your fireplace rock, the metal trim not so much. you could paint wood wall a warm grey or white from the stone and find a paint that works on fireplace frame and it might look good!

Is the blue tile you show close to the island color? If so, and if you want to feature bkue in your home, I think the blue tile would be stunning and cohesive with what you’ve done in the kitchen. Your kitchen choices sound lovely and much nicer than the gray and white that is so overused. I think a wood countertop adds so much warmth to a mostly white kitchen. It will be gorgeous!