How much money you got?
Okay, first of all, I think the interior is lovely, and would just need some tweaks to satisfy me as a homeowner. Inside I would, yes, get rid of the iron railings and instead install wood. I LOVE the idea of a floor to ceiling bookshelf replacing the banister. In my mind, I imagining solid storage on the bottom (painted white, simple, maybe shaker style), and on top white wood frame and glass on all sides (lighting installed) so you'd have display space for "pretty stuff." The glass would permit the light to flow through, still, so it wouldn't unnecessarily darken the living room.
Outside, well... yeah, outside isn't exactly beautiful, but it is tidy and well maintained looking.
I think what I might do is extend the front stoop so you have a proper porch that extends all the way to the left (left when facing) of the house. Maybe also to the right for a full-frontal (

) nearly wrap-around porch. I would replace the wrought iron "columns" -- the don't look substantial enough--with something more solid and strong looking, but still appropriate to the era. I think this would make the entry look grand-er and much more inviting.
I'm going to surf around for a picture... Nope, can't find one in three minutes.
Anyway, if you'd consider a $$ exterior face lift, I'd hire an architect to help you out. I mean, might as well get it done right.
But I do think it's a neat, tidy, inviting house as is, even if--if I were your wife--I'd want to do something "to" it, too.