This is the state of my fireplace:

As you can see it is the old style firebrick insert, and the old hearth and surround are now gone. I could put in a slabbed granite hearth and back panel (the n-shaped bit that sits on the wall around the hole). But I like the idea of removing the firebrick insert, and the loose stuff behind it, to open up the fireplace into a chamber. I am told it would be safe to burn logs once opened out, though I would not do this often, I am more concerned with something that looks nice. Are there likely to be any problems with this? I assume there is a structural lintel somewhere above the opening, so it is safe to remove the firebrick.
Once/if done, what would I repair the edges of the opening with? Gypsum plaster? Would I put some beading round, then slap on plaster?