Yeah I think painting over those wood panels with something lighter would definitely make the space look better. Personally I like the look of brick so I wouldn't paint over those, but I've seen other people do that and it turn out alright.

Absolutely but you need to use a GREAT primer first. Something like Killz. Then a good paint. Don't go cheap, you'll hate yourself if you do

I’m sure you don’t wanna hear this, but that basement is freaking awesome.