I lived in Egypt for 8 years, so it's kind of cute to see a themed tank of it.
I think sand would look really cool, although the blue gravel kind of matches the background nicely. I think more plants would look great too. Maybe you can find some that look kind of like papyrus, that would be awesome
Papyrus is a reedy kind of plant, almost grassy, with what look like the spokes of an umbrella on the top of the stalks.
Get some ich medicine as soon as you can, and start treating. Make sure you treat it for as long as it says on the directions, otherwise it will just come back. I hope your fish make it through.
http://freshaquarium.about.com/library/profiles/blfw0029.htm
That link has a lot of basic information about breeding rasboras (PH, temperature, food etc.) although it seems that they aren't that easy to breed. Good luck with it