So, after the collapse, I tore down the rest of the ceiling. (Look honey - exposed beams, it's so rustic!) Well, she didn't buy that as permanent answer and I had to eventually work on the rest of the room. I cleared out the dark wood paneling (which can be see in the 2nd picture) and was very unhappy to note that they ripped out some of the window and door trim that protruded out further then the remodeler's furring strips.
The parquet floor is in fairly good shape and had been covered by carpet when we moved in. My wife is an asthmatic so when we pulled them up we discover that parquet flooring had been laid throughout the the first and second floors. The pattern was lined at the edges with a darker piece of wood. The pattern showed doorways that no longer existed. I covered the floor with masonite and double layers of kraftpaper for protection.
After the walls and ceiling are back up, I'll have the floors refinished. I guess a sanding and polyeure- thane will do the trick. If anyone has a different suggestion or option, I'd love to hear it. My aim is to keep the almost blond coloring and to repair some deep scratches. I like that it looks like someone has lived there and that its not some room in a museum. No need to torture guests with removing shoes. I do have some drilled holes in the flooring that I'd like to fill. If I can locate some spare pieces I can cut them to size.