Maybe a tall kind of arrangement (flowers, buds, branches...) on the end of the table against the wall to draw the eye up. And then perhaps 3 pieces of art or wall decor extending from over the nook to over the table.

Also for a splash of color maybe you could put small curtains or something on tension rods in front of the nook and above the fridge (i cant tell if the stuff up there is decorative or just up there for storage, im assuming storage).

Have you considered changing the table set? Everything is so heavy and big in the room, and the table and chairs are floaty and delicate. Perhaps if you had furniture there that had more visual weight -- darker wood, or maybe stainless steel? -- you wouldn't have to worry about doing anything with the wall. But if you are thinking about artwork for that space, I would suggest using a textile, to counter the gloss of the paneling and to bring in some color.

All of your wood is the same color. I would either change out the Table and Chairs or paint what you've got. Some whimsical art above the table would be fun too. Lastly, I would change out the light fixture for something unexpected and modern. When everything in a room is one style (in this case rustic), there is no energy.

Wood slices hung on the wall in a scattered arrangement and a tall shiny metal vase on the table with bamboo in it.

How about mounting some fun plates on the wall? Painting the table a color would help balance all the wood in there as well... bright red could be fun!

Have you thought about staining the ceiling white? I have wooden ceilings like that because I live in a chalet-style home. The rooms seemed so dark before I stained them white. Now the house is so bright and cheery without having to decorate the walls much!

Good idea on the light fixture. Something bright and surprising.

Does that niche directly to the right of the fridge need to be open? It draws a lot of attention as is.

Were it me, I'd build a window seat into the bay, and put an oval table there, without trying to connect odd wall and table.

I agree you have a lot of the same color going on. It needs some visual weight (or whiteness)... just some contrast. SO perhaps the table and chairs is black painted wood? Or metal and glass table with white Eames Eiffel based (depending on which way you want to push the room... modern or cabin.)

I also find the overhead light and the fridge to be somewhat at stylistic odds...

large colorful poster

So many good ideas above. I would be tempted to paint all the wood white and bring in some contemporary touches -- table, chairs and light fixture. But if the rustic look is the one you're going for, the key, as many people have pointed out, is to introduce contrast. Can we see a photo post-transformation, please?

I agree with painting the table and/or chairs. Maybe painting the trash can and fridge niche a color to make it pop that compliments the table. And adding a lower fixture over the table, something fun.

I'd actually LOVE to see one of Poul Henningson's fixtures, in aluminum, to balance your fridge...

http://modernreproductions.com/home.php?cat=25

but for sure, they would take the room in a different direction.

What a great space. Don't paint the wood!

The room is generally masculine in feel and lends itself to a bright, simple, graphic style. Sort of updated Swedish.

Or... I'd also love to see this as a sort of Japanese-rustic-craft style (with some handmade pottery accessories). Black, indigo, earthy-tone pottery.

Either way, all you need are just a few small tweaks to make this sing! Ideas:

---Paint your small table a bright color. Get a nice graphic poster (bold, simple, colorful) at least 24 x 36 or 30 x 40. Hang it directly above the table. That's all the wall needs.

---For the broom closet cutout: Hang a very un-fussy textile (no shirring). Just a flat linen panel. If you hang art above the table, you'll want to keep the panel simple.

But another textile option would be to make it the focal point. I'm in love with these Japanese noren... kinda pricey but so stunning! And this could replace the artwork altogether:

http://www.jlifeinternational.com/houseitems/noren/JLNR1010.html

(check the site for other gorgeous styles!)

---The room has a lot of hard surfaces (wood, tile), and It would benefit from a little softening. Just keep it very simple (no tufts, buttons, fringe, ruffles). How about simple flat cushions for your dining chairs? And an inexpensive rag rug from Crate and Barrel? I like the windows bare and spare.

---You should replace the light fixture with something larger in scale, and with simple lines (this is a bit small and fussy). IKEA's SEPTIM is nice... or a large LERAN would add great texture.

---Add just a few well-chosen accessories to your countertops and you're done.

I would go Japanese, with textiles. I have a 10'-long Japanese restaurant sign (a kind of horizontal banner that hangs from bamboo) that I would put over the windows. It is black (but old and comfortably faded), with some red and off-white in the script. I'd paint the alcoves lacquer red (good idea, Sarah D). I'd get red or black lacquer chairs:

https://www.designjournalmag.com/product/Coco_Chair___Lacquer.htm

and a stainless steel table on wheels (one of those professional chef tables). And I'd hang a Japanese textile (perhaps just a square of vintage fabric, framed), on that wall, picking up the colors. And a really edgy light fixture with Asian roots, like the ones linked above. If there's room, I'd build a window seat into that alcove and put the table up against it. The highchair is a relatively temporary eyesore, so I'm ignoring it.

(On a smaller scale, you could use Japanese door curtains -- Noren -- to cover those alcoves. Some of the more organic designs would work here. Not the cutesy ones!)

I would have doors made for the nook over the fridge and the other nook with garbage can in it. Paint them a bright, glossy shade for a pop of colour, and co-ordinate with cheerful curtains with a bold graphic.

Total agreement with the poster who suggested staining the ceiling white. That is a LOT of wood. It's lovely, but it's a lot. Also ditto on suggestions to get a bigger, more modern light fixture and a weightier, darker-toned table and chairs. If you do those things, it won't really matter if you put art on the walls or not.

I think the room has a lot of potential--could be very cheerful, rustic-modern. It just needs a little contrast and energy.

big birch bough hung asymmetrically.

I agree with dearmisha on the doors painted a bright color (or glossy white might look good, too). I think that these "holes" are sucking some good energy from the room. And yes, contrast!

Maybe I'm alone in this one, but I wouldn't put a thing there. I feel it would be too much going on with the texture of the wall which is nice. Besides, if you change your mind then you've got a hole in your nice paneling. Hmmm... I'd put flowers on the table instead! =D

white shelf with knick knacks as well as useful but pretty items (like a nice trivet or vase).

it would also be a nice place for fresh flowers since you don't want to clog up what little table space you have.

flank the shelf with some wall hangings (textile, photo, candle sconces)

if you want to keep with the earthy feel i've seen people use the shelf fungus that grows on trees as actual little shelving.

p.s. i love all the wood as well as your stools!

Simple wood shelves (with plain-ish black metal brackets) with colorful storage- blue Ball glass jars with dried goods, or those round-top glass jars from Belgium... colored glass storage to catch the light from the windows...

That's what I'd do, but there's lots of good ideas here- be sure to send in some after pics!

My gut feeling is putting something soft and colorful on the wall. Maybe an urban quilt wall hanging... http://amyahlstrom.com/quilts.html or something in the same vein. Something that hints toward the rustic, country environment but also acknowledges the modern aspects.

First, if you don't mind the $400 cost, the Vertical Garden featured on this site a while back would look great hung up above the table - and might be a great place for growing a kitchen herb garden.

http://www.smithandhawken.com/catalog/product.jsp?productId=prod1430005p&categoryId=cat340003p&sku=1430005p

no shelves, no knickknacks, no metal, no mirrors, no vases, rocks, flowers, hanging plants, tree branches... Let the space be.

I think a little asymmetry is restful-- if balance means "sticking a thing you don't need into the room" it kind of sounds like clutter.

If you hunger for some color-- maybe a simple flatwoven rug on the wall-- something scandinavian looking?

I echo an earlier comment that a larger pendant lamp would add some depth to the room. How about a big linen drum pendant or a colorful plexiglass one?

I appreciate the calmness of your space, which I believe is achieved by limiting variety. I would use this to your advantage when finishing the decor by letting each new element echo an existing one. For example, the lamp you choose (and I agree a replacement is necessary) could mimic the shape of your unique barstool tops--a low, wide cylinder.
Additionally, if you choose to add decor or art to your wall, I would try a mix of sizes collaged in such a way that pieces are hung above the table, utility opening, and refrigerator. The height of this room is a bit lost since the wall blends into the ceiling, and some art hung high on the wall would define the room's height.

Pickle the walls. I've seen it done and it looks wonderful. It brightens the room up allowing for more light reflection. Done well, it softens the area up and you don't have to be playing around with "tricks" that ultimately will not work. Most important the pickling will rid you of those pine poked knots all over your walls and yet keep the wood grain soft and intact.