Interesting idea! There would be a number of challenges that need to be figured out. First issue would be installing new paneling. Finding matching paneling will be difficult locally. You could use the existing paneling, but you will have joints that need to trimmed up for looks. You have hatches on both sides that need to be addressed for looks. You mentioned the heat duct, which is a minor issue, if you have looked in that cabinet, your water heater is in that location. Really cannot move the water heater. This means the maximum width is from the wall to the water heater cabinet. Not sure that distance is, but it could limit the chair size.
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