Great question. I like both, but most of my house is carpeted (bathrooms, kitchens and foyer excepted).
Current carpet and indoor paint are 11 years old, so we'll probably have both redone within a couple of years (after we break in our next dog). Living in earthquake country, where all heavy furniture is affixed to the walls, means replacing flooring or repainting is a giant hassle, so we have both done at the same time.
Like mine, the interior of your home could do with a repainting.