From what I know about Illinois weather, I sure wouldn't want an electric furnace there. I remember getting stranded for several days in your lovely state during the blizzard of '79. The "100 percent efficient" claim for the electric furnace is meaningless: ALL electric heaters are 100 percent efficent. A heat pump, on the other hand, will create more heat than it uses, although how much depends on the temperature. Yes, the auxiliary heat will kick on in lower temperatures, but even under the coldest conditions it will be more efficient than the electric furnace. One trick is to not change the thermostat more than a few degrees at a time. I think you can buy setback thermostats made specifically for heat pumps that will slowly adjust during the day to avoid kicking in the aux heat.
What fuels are available to you? A heat pump will be more expensive to operate than natural gas, but maybe not much more than propane.
Unless the fireplace is made for heating rather than looks, I wouldn't count on being able to heat with it.
Personally, I'd just rip out the electric furnace and replace it with a gas one.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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