Need advice on what to do with this room
To the OP: I am not sure why you need to take any walls down to replace the existing electrical. Instead of replacing anything, Why don't you just ADD an additional circuit? It will be cheaper to add a 20A circuit than convert an existing 15A to 20A.
No need to take anything down! An electrician can fish the wires in the existing walls. Plus two circuits are better than one!
Years ago, when I was looking for a house with a dedicated room for music/theater I ran into similar problems. Nothing suitable or available in the market.
Fortunately I found a house with an unfinished room above the garage. I was able to tailor that room for my music/HT needs. So consider looking for houses with unfinished rooms not just finished music rooms.
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