I was thinking the same thing but didn't want to persuade anyone in to agreeing with me. I was also thinking about a white with a blue undertone as well. The cherry wood throws me off. Thank you for your thoughts on this pressing matter. :)

Your gray sectional must have an undertone. If it's green, for example, the floors might really pull it out and if it's purple, all heck might break loose with a blue toned white and cherry floors. :). If the undertone is blue, a blue undertone in your gray or white should theoretically work. I'd definitely start with your sofa, in the room, as you pick the paint.

I would love to know what other colors you have in the room, or will have in the room; for instance, or you going to put a rug in the space? With the only information being the dark charcoal sofa in mind, I am thinking of something like a light grey on the walls and maybe go really wild and make the ceiling an eggplant type color. Then bringing in the light grey and eggplant color into the room with an area rug, then maybe some drapes in eggplant and grey (maybe stripes, but out of fabric that is not terribly heavy. Then maybe using white as an accent with sofa pillows, etc. Just some thoughts.

I would use the same white on the cove and the ceiling. Using two different colors brings the height down. It also looks like the paint on the ceiling has a sheen to it. Use a flat finish on the ceiling and cove and a matte, which is washable and doesn't relect light so the color is truer.

For the walls, try a light gray like: or

Here's a photo of my furniture in my cramped rental but you get the idea of color and style.
Ciscomom what do you mean? If the sofa has a purple undertone it will look odd and not flow at all with cherry wood? I read on a designers blog that purple undertones are never good. I think it's more of a blue undertone. I think and I hope it is.
Annie eggplant ceiling would be way wild for me. I think the space is too small and the ceiling too low for dark colors.

Houssaon: great info. I'm a bit confused where would I stop painting the wall and start painting the cove And how would I transition the two colors maybe a thin piece of molding?

Think I found some photos to help with the coved ceiling paint