I'd paint the wall around the fireplace mustard yellow. Kind of Bohemian chic and it depends on your furniture, but to my eye, it will make the white brick fireplace pop.
the white is really OK ! and makes the room pop along with your red sofa, get a huge piece of art for the fireplace like dytecture suggests. and a great rug. Looks like a fun space!
I would "disappear" the brick by adding lathing strips and placing 1/4" thick drywall over the entire wall including the niche area. You can cut narrow long strips of it to place around the curves..a little joint compound and you have a real wall surface to do with as you desire, with little cost or effort.
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Andrew Mayzak
Dytecture
Jeffery Rost
Oak-Land Custom Fireplaces, Inc.
Barbara Griffith Designs