Wow that room is really reflective with wall panels, brick walls, and bare concrete floor..
How is the sound now. Is it totally different. Maybe when you put in the area rug it may have very little effect in that room.
I have wood floors, and the sound is great to me. I could use some slight wall treatments.. But not at this place, when my new place is finished I'll get into all that.
EDIT:: Oh, and IMO I think the bare floor does look a little better. But carpet down there (1 color carpet) might be better than wood floors. But this is IMO, however for looks, the wood floors (laminate) may actually look better. If its going to be bare for awhile, maybe think about using a epoxy paint...