Need help with fireplace surround
For some reason, I'm having a total block when it comes to what to do with the fireplace area in my living room. Our room is fairly traditional, and the area around our fireplace sticks out like a sore thumb (black floor tile with some silver/gold flecks). We're pretty set on keeping the current fireplace insert, but that black tile has got to go! Any ideas?

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Removing the hearth is definitely a possibility. Normally I love a hearth, but I think this space might open up quite a bit without one, and it would add to our furniture options. If we were to do this, do you think we could get away with leaving the fireplace insert at the same height or would we need to move it down?
I love the idea of putting some shelving in to the right of the fireplace! The other side of where the wall juts in (at the far right on the picture) leads to an outside wall (and we live in a townhouse, so unfortunately we can't do anything about this), but I think it would be great to put lighted glass shelves in the recessed area.
The final objective is to gain more space in your living room.