It has what are called "tubular" tires, yes, they are glue-ons.

You could get a second set of wheels with clincher tires which would be easier to deal with for an everyday rider, or you could have new wheels built using the current hubs and a nice vintage looking clincher rim like the H+Son TB-14, or something like that.

I would recommend against painting it, though. The paint looks like it will be fine with a little touch up, and maybe some oxalic acid to get ride of the rust. Once you have it repainted the bike is no longer original, and the value will drop.