We already posted a pixelated – and fake – fireplace, but if you want something that’s more interactive – but still fake – fireplace, check out Ted Martens’ program, Pixel Fireplace.
Aside from making the comforting crackle of burning logs, the program lets you manipulate and interact with the blocky fire by typing in word commands. In fact, you have to type word commands to start the fire in the first place. Sadly I don’t think it has a “someone to hold” command.
I bet someone’s already working on a Minecraft version of this. Pixel Fireplace is available for both Mac and PC. You can download a free demo or buy the full program for just $3 (USD) from Hex Ray Studios’ website; Mac users can also get it from the Mac App Store.