I bought a $150 ebay special a couple of years ago for a basement guest bedroom. It's roughly the size fo a 42" TV, has two levels of heat, and like 8 different colors. It can be used with the colors & fake flame only, no heat on, just for ambiance. Has manual operators on the unit, as well as a remote.
I was about 3/4 of the way thru this quick project to make a surround when I snapped this pic. It looks nice in person, and is perfect for a touch of extra heat in this guest room. Only issue with the one I bought was a pretty chincy remote, and it was a no name company so I knew parts would be hard to get in the future. I bought an inexpensive learning remote that was much better quality and cloned the operation, so now I have a spare for in the future if the cheapo one dies.
There is little to go wrong inside them. The fake flames come from a small motor driving a roller foil strip cartridge with a light shining on it. The heat is just strip heaters with an electric fan. I'm sure some higher end ones have more elaborate guts.
For looks and a bit of added heat in a room I think they are nice. If I was doing a unit like your picture in a family room I would spend some coin and get some name brand that has good reviews.
My $0.02