Remove the arches.
Add hardware.
New fp surround if you can.
New lighting
And the new flooring you plan on doing.
Good space. Lots of potential

Good to hear that you're putting in wood flooring, but could you give some indication of what style direction you want the room to go in? What furniture you plan to use? My first inclination is that the cabinets just don't fit in the room at all, painted or not. The fireplace should not be difficult to alter to fit in with the style you prefer, but I agree it certainly needs work. Those tiles are not pretty by any standard, are they?

I'm a bit of a fly-past commenter, but I'm sure it'll help others give you sound advice. Potentially a lovely room, I think.

The built ins are bulky looking. When you install a wood floor, I doubt the two will go well together. I would consider using only bottom cabinets with doors and more open shelving above (on either side of the fireplace).
Huge room with great light!
Lots of things you can do with the fireplace, but I would change the built-ins first. I also think built-in cabinets that match the wall they’re on tend to look better. Just my non-professional opinion.

I would remove the cabinets carefully and take them to a building recycling center. Install floors and then plan for new credenza style cabinets to flank the fireplace. Personally, the fireplace and light fixtures would need replacing/updating to suit me. Without a clue as to your furniture and style preferences, I can make no further recommendations.

Something like this, with or without the upper cabinets and bar.

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Something simpler and cleaner

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Furniture instead of built-ins

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@decoenthusiate posted my visualization in her second photo with the grey blue cabinets. And everyone is right about getting the new flooring underneath, no matter what you plan on the walls.

We might suggest removing both of the cabinets on either side of the fireplace, and then doing something like in one of our designs pictured here.

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