Contrary to popular belief darker tones actually play really nicely on walls.
Update half wall wood paneling.
Grab some drywall compound at your local home improvement store then use it to fill in the distinctive cracks and lines of the wood paneling.
This jessica helgerson designed space is pretty much peak mid century but thanks to the varied shades of wood it stays away from the clichés.
If both the color and texture of your paneled walls is an issue you can still use paint to update their look you just need to be more creative about how you apply it.
Chip showed tina a dark blue shade called north sea get the most creativity out of your wood paneling by starting with some spackle.
Afterward sand prime and paint the wood whatever.
A faux finish is an ideal.