What are your options?
Please pardon my abruptness. In one breath you ask 'what do I do', in the next you say you want to give up on both and start over with a 'better' pet, followed yet again by maybe giving up only on one cat while keeping the other, then further waffling by trying to decide which of the cats to keep ... ?????!!!!!
Do you see where I am coming from?
Either you want to help these two cats, or you don't. I am sorry for being so blunt, but make a commitment or decide to do something else. I will readily admit, I am *not* a fan of the 'something else' option ... but I am realist enough to understand that if you do not have the skills and/or do not have the ability to expend the amount of time/effort this task requires, then your options for these two cats are going to be very limited.
Are you willing to do whatever it takes to reach each cat on a personal level, individually, and on the cat's time-line ... no matter if it takes months or even years?
There ARE no quick-fixes for this scenario.
Anything 'fast' isn't going to be good.
Either you take the time and make a concerted effort to separate each cat and work independently with them to persistently, yet patiently, socialize them to your family (you and wife) or you don't. Concentrated and dedicated socialization is the ONLY thing that will turn either of these cats around to becoming relaxed and confident housepets.
Having them neutered will certainly help.
There are no guarantees about what sort of personality will develop or what level of socialization each cat will achieve after neutering and dedicated socialization work.
Are you prepared to accept the cats as they will be?
I absolutely feel their socialization can be improved but I will not sugar-coat this and tell you it will be easy. It will be long, hard work. BUT! ... the rewards will make all of your efforts worth it when you have happy and relaxed housecats. It *can* be done. It just needs to *be* done and you have to *live-it* every moment with both cats.
I have tamed and socialized completely feral adult cats into our own personal housecats and they are wonderful pets. I will help you all I can, explaining what to do, why you are doing it and what the goal is that you want to achieve with each step of teaching the cat socialization skills.
If you can not, or will not, dedicate yourself to teaching these cats the necessary socialization skills they need to have to live happily and confidently with a family, well, then, I just don't know what to advise you.
What are your options?
*edit*Do you live in an area safe enough (low traffic or loose dogs) these two brothers could live as outdoor kitties? If not completely loose, perhaps in a very large outdoor enclosure with temp-controlled sleeping area?