I would recommend doing it outside as it stinks and the rust from the steel wool will stain concrete so do it in a shop or over the road. DIY Vintage Wood Stain look. (How to age new wood). Good for all things wood!
Full height cabinetry allows for easy concealment of brooms/mops/vacuum cleaner. Having the washer and dryer separated creates more benchspace in an already tight area. Perhaps framing the dryer with cabinetry would create a more streamlined look.
Stackable Washer And Dryer - Design photos, ideas and inspiration. Amazing gallery of interior design and decorating ideas of Stackable Washer And Dryer in laundry/mud rooms, closets, kitchens by elite interior designers.