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cjr-
Lies! I genuinely love 60s and 70s fireplaces, even those ones that look like they've come from a Flintstones set. I really wanted a vintage fireplace we could keep, unfortunately as you know ours doesn't have anything like that. In fact we're thinking about putting an electric fire in, but modern not 70s.
Fox
This. Keep it!
It's not an original feature, but it does have a lot of character. Do you really want some bland fireplace like everyone else has got instead? That's mad.
I would do the rest of the room very minimal, modern and tasteful, paint it all white and have that as the big character feature in the room. Get that light fitting inside working as well because it would look even cooler lit from behind, OR have a retractable TV or projector screen come down from inside the cavity behind the mantle/lintel. Then you wouldn't have to look at your ugly TV when you're not watching it.