Unless the utilities are insufficient that might be a little drastic, especially if there’s no damage. Upgrading everything would be the only reason I’d want to demo it all. You could get away with new countertops, sinks, and appliances. Refacing the cabinets. Stripping the wallpaper (gawdamn do I hate doing that shit. Wallpaper is evil, especially when it’s multiple layers deep) and giving it a good prime and paint. The floors almost all need redoing.

Point being it doesn’t have to be stripped down to the bones to make it look pretty good. If you want all the modern cheap trim, core doors, and Home Cheapo tile to make it look like a new tract home for no other reason than to make it look like everything else, sure. Demo away.