This would add a subtle inset shadow to the image, remove the image black background color and opacity you have set:
.fancy-heading .media-overlay {
-webkit-box-shadow: inset 0px 0px 69px 20px rgba(122,122,122,0.8);
-moz-box-shadow: inset 0px 0px 69px 20px rgba(122,122,122,0.8);
box-shadow: inset 0px 0px 69px 20px rgba(122,122,122,0.8);
}
Thanks.