I would like to see the paneling painted Benjamin Moore catalina blue which is a muddy medium toned blue green. It's on the walls of the first photo below. I would paint white the baseboards and door and window trim, as you see in the second photo below.

I have oak cabinets in my kitchen and both bathrooms, and like the contrast muted greens and blues give. I did just paint my bathrooms a warm peachy beige as I have a weird old linoleum that I had to match, and that was what worked best. I'm amazed at how wonderful it looks with the wood tones. The wood is a couple of shades darker, and they compliment each other nicely.

Here's the color I went with. Be sure and click on the Preview Color in a Room button to use the room decorator program. You can add up to 10 different colors at a time, and paint a variety of rooms. If you like color, it's a lot of fun.

http://www.behr.com/consumer/ColorDetailView/290C-3

I like a soft sage green with oak .

Clark & Kensington's (ACE Hardware) Sable Sand worked well with our oak cabinets and woods.