there are 50 better alternatives than leaving those bookcases and brick as is. (and yes, remove the paneling, the flooring, and everything else in that room)
here's the brick painted, the insert painted, and new bookcases.
You can buy cheap bookcases and modify them w/trim to update those things from the 50's. I wouldnt waste time and paint painting them.
buy unfinished base cabinet. paint. paint the shelves and do some thicker molding around it. new wood mantle.
Go to this blog and read how they did this w/Ikea billy bookcases
you could buy a base cabinet, install it, and cut some wood for open shelves like this
or like this one. take the wood and top the bood cases w/them. you can paint the brick any color
or, no cabinet, just float some shelving, paint brick, remove insert, and paint the walls
Q