I like second plan! That space will fit the wardrobe perfectly. Take all colors from the art. The colors can be lighter or darker than the colors you see in art. Take "Venice" with you to paint store and they might be able to help you choose good colors. Idea: paint four walls the same and see if you like that. If you feel the room lacks interest, then paint the accent wall. Choose a pale green that harmonizes with "Venice" and a darker green accent. Yellow + red accent White + blue accent

You could also bring in some texture with bamboo sticks or decorative branches and help balance a bit the height of your room with small scale furniture. Spray paint them if you find the perfect size and shape but they aren't the color that you need. Ikea carries white decorative stalks for a very good price. the ones in the 1st picture hold well with small kids around and you don't need a vase for them. there are washi paper or crinkly paper floor lamps with a soft beautifully diffused glow For a budget friendly version check ikea or target http://www.ikea.com/us/en/catalog/products/80028552/

OK... but the wire wont be lower as it is fixed now. The wire in the pics below is the wall facing each other. They were leveled on equal height but the beam on one wall makes it seem a little above. But i think you guys are absolutely right that up and down lights wont look good there. I think you are right about down lights lessismoore. Would it look good if i go with two different lights on opposite walls??? it would look odd right.

Leather sofas can really dominate the room and can give an overall cold feeling. I would add some earthy elements, like a wood coffee table with glass or metal. Go to Restoration Hardware's website and look at their sofa room scenes. And I'm sorry I think the art is too harsh for the room. That's all your eye goes to in the room. too overpowering. I would look for something softer or maybe a cool mirror and I would add color to the room with pillows and some colorful lamps. I also think woven blinds would look great. They add warmth and give a finished look. The color of your window treatments should contrast your wall color a bit, not match it or else it starts to look generic and blah.. You have warm walls, warm floors and the woven blinds, like Hunter Douglas brand would pull it all together for you.