Depending on the wood, you might considering stripping and refinishing with oil and wax. It would let the wood shine through and update that heavy gloss finish.

I like the idea of stenciling a pattern. However, If you plan to keep it in the family, you could paint it a light color and stencil your sons name on the back in a script-type font, with the plans to add future names or even the names of other family members that have used it.

Definitely add a cute cushion that ties on.

It would be cute painted white and I don't think it would change the integrity of the handmade piece. The stencil idea could be really cute too, but I would strip and reseal the finish first to tone down the high-gloss. You could also cut a rectangle of wood to fit the back piece and paint it with chalkboard paint to create a unique drawing surface, but that would not be necessary to make this piece fit nicely into your home.

I'd focus on safely removing the stickers and avoid any other changes - its a gorgeous piece with a great family history!

If you're concerned about it blending in or making it more decorative, I'd just get a small area rug and make a bench cushion. None of the history is lost and you can be as bold as you want to be.

I think its beautiful and personally like the idea of a rug under it if you feel it blends in to the floor.

It would look super cute painted like a big fire truck as the back looks kinda like a ladder.

http://www.getjunqued.com/

one of the bright blue colors from the above link. or what ever works best for you. its a little gypsy looking but i really like it!

Your great grandfather BUILT this. Keep it simple, think ahead to the next generation. Just remove the stickers, sand, refinish. Let it stay simple, beautiful wood. No paints, no stencils please. I agree with mcintyree, put a rug in front if you need contrast with your floor.

I have to agree with mcintyree - give the original piece some love, add a rug and a cute cushion.

Or to keep the piece's original form, maybe try the starch/fabric technique (I've seen it used on cabinets) for a look that you can change and easily remove.

We've got a similar one that my dad built for my brother and I. My mom decoupaged on some kitschy late 70s owl and woodland creatures she x-acto-ed from a book. Maybe you could do the same with a book from the era your Grandpa would have made the piece if you can't get off the stickers? I've found that soaking the sticker in a little vegetable oil usually works pretty well to get the sticker off. Good luck!

I'd sand and oil. I agree with a bench cushion and putting a small rug underneath. Once you lose the gloss and add some color and texture with the rug/cushion, it will look really good, and will still be kept in its original state for when you pass it on.

Can I please say DON'T decoupage etc. It would be sad to ruin a lovely, handmade piece.

I would restain it at the most. Nothing too dark, but a more contemporary tone might not be awful. Don't paint it!

Love it! My 2 cents: Olive oil will remove the stickers without harming the finish. Use your fingers or a terry cloth, saturate the sticker and simply rub off, may take a couple tries.
Keep the original finish, add a back cushion to coordinate with room, maybe a seat cushion but make sure it is the tied-on kind.
Lastly, I'd drill a couple hidden 3/4" holes (paddle bit) in a row along the back for when it turns into a hiding spot. (Ounce of prevention , I have 3 kids) Lucky you for the heirloom!

Thank you everyone for your wonderful suggestions! I am leaning towards not painting it now... just safely removing the stickers and adding a colorful seat cushion.