You have all the reasons to redo the house, its very lifeless and looks worn out. I feel creating a separation will terminate the spaciousness of the room. Adding colours will surely help, Since you have a tan color sofa,I suggest grey, white or light blue color on one of the walls. Add some art works of the color you chose for the wall. This room needs some fillers like , books, throws, candle stands tall and lean. YES DON FORGET 1. Mount the tv on the wall make some space on the floor and Fix a large size mirror ( Wooden Frame if you can afford).

If you can't clean up the painted edge, you could always add a 1x3 piece of wood as molding. You can even carry it up to the ceiling to frame that wallpaper. I don't see that paint color in the wallpaper, or maybe it's a lighter version of the flower centers. Maybe stencil on a design using the darker color, or another color from the wallpaper to help tie it together. Then narrow floating shelves or vertical frames or something in the painted areas it you feel you need it. Maybe turn the bed around so the wallpaper is the headboard.

thnks. I actually have a family picture wall in the same room which is combined with dining area. So not sure if adding more wall Art will make the room look picture full room. By any chance the full wall to wall bookshelf will go well? Or mirrors or u still suggest wall art over all?

I will definitely go for a photo wall. I love photography and travel so I would want to show off a few captures ;). Though I will go gfor a look like this one and not all the items would be photographs per say..