Hi! So I'm not much help with paint color, but wanted to share two things that we did which you might consider: first, we got a high-heat black spraypaint (Rustoleum from Home Depot) and painted the fireplace face plate (the brass part) black, which instantly updated our fireplaces for about $10; second, I did not care for our red brick fireplace, and hand-painted it to look like a different color of brick. Without priming, I hand painted each brick Benjamin Moore Eagle Rock, then sponged on a lighter grey (Willow Creek) and a darker grey (Ironhorse, I think). Later, I decided it needed some brown, so I sponged on a bit of watered down brown paint (can't remember the color). I took care not to get paint on the mortar. The whole project took about a day. It came out great and I get tons of complements. If you are at all hesitant about getting the "painted brick" look when you do it all in one color, I would consider tying this method first. 99% of people would not know that the brick had been painted. If you don't like the way it turns out, you can always go back to your original plan!

Is there already a chimney in place? The space looks very small, so consider a thin stone veneer and a small, electric fireplace for the look without the need for major construction. See Houzz photos under "electric fireplace" for ideas of style, incorporating storage.

And how about durability as a flooring option? I mean .. What is the expectancy of its shine, gel layer and life in general? In a nutshell is it a viable option for living room floor? And if yes, then would its edges match or would it still be like tiles where edges don't quite match?

White for other walls.