the nursery (aka the tv room)

Our friend Sarah alluded to "the nursery" a while back. The temperature has started to drop and I'm beginning to focus on my plans for this room. It was probably a freak cold front we had a few days ago, but it got me thinking I need to start knocking out a little at a time here. Time is something I don't have much of before our bundle of joy comes home so I gotta get started. Here's the plan. Strip all the paint and refinish all the wood detail. We plan to paint the walls something a little more interesting (color still undecided). Going by my other refinishing projects this could go slow as hell or relatively smoothly. I'm hoping for the latter.

You'll notice the tv happens to be situated in this room. This has been designated the tv room since we moved in, but we always had plans to make this the bedroom of our first child. The tv will eventually be relocated across the hall to the sleeping porch (we use it as the office). You can see a bit of it in the 2nd pic.. Now to the question of, should I refinish this room?

The upstairs bedrooms were originally painted. You can see the straw-yellow color in the bottom pic, so I was concerned maybe I should leave it as is. The new paint matches pretty closely to the original. That thought lasted about two seconds after I uncovered what the wood looks like. I've heard that wood that was destined to be painted wasn't as a high a quality as that which was stained. I was worried about knotty wood and the like, but judging by the little bit I've uncovered, it should look great. :) The master bedroom had previously been refinished (albeit not very well), but well enough to want me to continue the look throughout the upstairs. I don't have the heart to cover it up again.