Mark,
I like your Andalusian house, despite seeing only part of the interior. The house I have built is aesthetically, structurally, and material-wise fashioned after Spanish architecture of your region, but more opulent - I would call it a small house of a wealthy landowner, jaja.
If I was doing it I would love to preserve the slanted beauty of your fireplace bell. I would:
-keep the massive masonry chimney as it's a part of the room attractiveness
-insert insulated stainless chimney pipe
-build a square bell, 30 cm away from the walls, that would be almost touching the chimney with one corner, so all walls would effectively radiate heat (if heater walls are at least 15 cm away from the wall they are included in calculations of the amount of heat radiated by the bell)
-build slanted top corners of the bell to preserve the style then plaster and whitewash
-insulate the house wall around the bell
I know that you have a different idea, but I was itching to express it. I'm just talking about it from a perpective of someone, who as a 12 year old child, demolished 2 kachel heaters and two kachel cooking stoves, so we could have "convenient" gas, without any regard for preserving the heritage, work of my great-grand father and without any self-preservation instinct (wood can be always gathered, gas - rather not). I also love beautiful design costing a lot of sweat to achieve it.