Yep paint it all a nice light color and get some lamps you will need them anytway.Remove the wall shelf on the right

I'd start with the electrician and then paint the brick and panelling.

Definitely paint the paneling. That wood paneling gobbles up all the light in a room. If that's still not enough, then lighten up the brick.

To @celerygirl's point, I would paint everything white as well, including the brick. Additionally, hang a mirror on the brick wall (after painting white).

Thank you all--I do plan to lighten the walls and fireplace. What about light fixtures? Ceiling, floor, should I bother with getting someone to fix the inset lights?

Regarding lighting, I would opt for LED light strips alongside the wall and under the kitchen cabinets.

Examples:

http://thegrife.com/wp-content/uploads/2017/10/led-wall-light-strips-and-led-illuminated-walls-strip-profile-with-58b34aa4a3ff9-jpg-1200x675px.jpg

http://wtspoolandspa.com/wp-content/uploads/2018/03/charming-led-rope-lights-under-kitchen-cabinets-come-with-white-inside-kitchen-cabinet-lighting-ideas.jpg

The inset lamps give it an eighties look. I would cover them up, or just keep them there.

The fireplace is awesome without paint. It just needs a real good cleaning. Paint on brick takes away all the charm of the fireplace. Once you paint brick there is no turning back. It amazes me how Joann single handily ruined so many brick fireplaces and homes with gobs of white paint and people follow behind like blind mice. Update the fireplace surround with some heat resistant paint and add some light color cushions to the ledge on the fireplace for extra seating. Yes paint the paneling and get an electrician in to repair the lights. Add some seating with lamps.

Remove the wood paneling and put up drywall. Paint a lighter color.

Consider white washing the brick, but I would do it so it is not so jarringly white. Especially if the fireplace gets used.

Paint the fireplace doors with fireplace paint in black.

How big is the room? Where are the doorways? Why don't the lights work? What will you use the room for?

@functionthenlook I had in mind "whitewashing" the brick so the color still shows through, and leaving the "pop-out" bricks natural. But now I think of it, it will need to be cleaned beforehand anyway, so maybe we'll change our minds.

What kind of cleaner is best for brick?

Also, which portion is the "surround"...? The whole wall is fireplace, lol. Do you mean the ledge?

Kathi Steele, it seems like our comments crossed. I do have white washing in mind. I think I also got the answer about what the surround is that functionthenlook also suggests painting. Black is a good idea.

It's not very big, maybe 15 x 15. I don't think we've figured out what to use it for exactly. It looks like a den, but we won't be putting a screen up anywhere. We do want to use the fireplace. So it will probably just be an extra chill-out sit-down space for reading/listening/chatting or alone time for two or three people at a time. There's a much bigger, brighter open space to the left where all the light is coming from where I expect bigger groups to gather for parties and such.

TSP is good at cleaning brick. You might have to order it online. You can't buy real TSP in my state so I get mine from Amazon. Maybe you can incorporate a table in the room for playing games.

You would be surprised where people gather. They favor the kitchen and rooms that attach easily to the kitchen. I have no idea why. I give up fighting it!!

Painting the brick and walls a flat white will look like a slumlord's solution--cheapest paint and no thought.

Fix the lights. Even just for safety's sake, you need to know why they don't work. Did a critter gnaw through a wire? It there a bare loose wire? Is something about to cause an arc and set the house on fire?

Clean the brick, and replace the '80s brass surround..

Thanks for the proper term, german smear, Nancy. I want mine on the less extreme end. You're right about the lights, tatts.

Any floor lighting inspiration?