Opening up a can of worms...........

I need your help on this one! I have included pictures of my "lodgey" living room. The cedar lined walls are original to the cottage from around the 1950's. They are tongue in groove rough cedar. When we bought our house 11 years ago, we thought it would be the first thing to go. However, they grew on us and made the room cozy and went well with the lodge look. Over the years though the room has become a challenge to decorate mainly because it is so dark. While I love the walls (and the ceilings are the same too, continuing over into the adjacent dining room) I am thinking about a change, and this is where I need your help!
I saw the Coastal living idea house on Letteredolives blog (gotta love Layla)
I fell in love with the white bead board walls and ceilings! I thought this might be a great way to go in my rooms! But, I am afraid I may end up divorced it I bring another project to the table! Could I get away with painting the walls and ceiling? Again, it is rough wood and I am afraid it may bleed through. And, since it is rough, I don't know if I wouldn't achieve the smooth beaded board look I am after. I think the fireplace would go with the more beachy look (I am on a lake for goodness sake!) I could remove the deerhead and replace it with a model sailboat, etc. I do have some wonderful black and white prints on the wall of photos taken here at Crystal Lake in the 1940's. Would I have to get rid of my leather couches? I don't want to open up a can of worms here! I am stuck! Pls. send me your opinions! Thank you!!!

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