It all looks really good so far, especially the peg construction. I would love to see it reupholstered too, after you're done with it. I would leave the wood alone, don't attempt to restore that, as you would be moving the patina and its historical value. It is beautiful in its present unrestored state, just needs nice upholstery. I would go for white, so that it can match any decor since you are restoring this to sell, right?
Can you show a construction photo of the underside of the seat? We need an "ugly photo" to see how it is put together under there, repairs, stuffing, nails hardware etc.