It's traditional, and probably looks the best, to use eggshell (if not matte) on the walls, but at least a semigloss, or gloss on the baseboards/trim. I would go with smooth walls - it's always easier to add on later than to get rid of texture.

Texture isn't big here so I much prefer smooth. I'm a matte person in terms of paint (hides a lot more). I like the matte walls with a semi-gloss or pearl trim. High gloss finishes are also nice but much less forgiving in terms of application and touch up.

I would get a good drywall guy in and go for smooth walls. The height of the ceiling makes no difference - they have to go up there and do the work regardless of what texture is being applied.

The actual sheen is somewhat dependent on the brand of paint. I don't see much of a difference between matte and eggshell, but if there is a choice, I would go with the lesser sheen, which is the matte.

I always used BM Regal in eggshell on my walls because it has a fairly low sheen but is still washable. Then I tried BM Aura and now I'm sold on that. Aura's flat is so lovely and matte and the coverage is excellent, so even though it is more expensive than Regal, you end up using less paint. Aura washes really well and is supposed to be resistant to fading. I'm still going to use BM Regal eggshell when I want a little sheen, like on a paneled wall for instance, because its drying time is longer thus more forgiving for more intricate work. Likewise, I'm still going to use Regal semi-gloss for trim. Aura is not particularly hard to work with, you just have to work a little fast-forward without going back over your work too much, it takes just a little bit of practice and is easy once you know what's required.

Get a good drywall guy and forgo texture IMHO.

Drywall finish is a very regional thing. I'm in the South, and smooth is the standard here. Out west I see more orange-peel or knock-down finishes. I think the main thing would be to keep the finish consistent throughout the house. And as for your GC, yes, I think he is trying to make it easy on the drywall finishers by suggesting "anything but smooth."

I am in Cleveland. When I have seen non-smooth drywall surfaces, I think to myself, "what are they hiding? What a shame". I personally hate how it looks. Smooth is much more sophisticated and "normal". We had that trowel plastered look at our old house and I absolutely hated it. It was in the attic at my Mom's house to hide the drywall joints and I hated it. My friends house has it all up the stairs and I hate it.

A decent drywall person should be able to make smooth walls for you. Ceilings are another story, but any drywall person worth their dithers should be able to make a decently smooth wall!!! It's fairly common in older houses to not have "perfect" walls.

Ceilings often have a swirly pattern, I don't see flat too often. Our kitchen ceiling is flat but the rest of the ceilings are swirlies.

I personally prefer Satin for walls and Semi-Gloss for painted trim. I *hate* eggshell and flat - I find them to be difficult to clean, they are dirt magnets, and I don't particularly care for the look of them. And I don't like how they feel. I think Satin is a nice compromise between shininess and flatness.

JMO, of course.

We just had all of our drywall replaced by an excellent contractor and he could have done either. DH prefers a light orange peel for the walls and light knockdown for the ceilings.

I don't have a strong preference either way so we went with texture. We do live in the west and textured walls are common here.

Depending on the brand of paint, we use eggshell or satin for the walls and semigloss for the trim.

Texture is a VERY regional thing.
Smooth is more difficult to do, usually more expensive, but I don't like it. It shows every little ding and dent you might make. We bought a 1970's house that was remodeled and all of the wallpaper was removed. On those smooth walls, you can see every flaw.
Here is Texas, the builders all use some version called "Montery Drag". I believe some people call it "knockdown".
Can you go look at new-builds in your area and see what they are using?

Since you have paneled wainscoting, you already have texture on your walls. It might compete too much to have yet another texture on the drywall. I think most people here in the Midwest prefer smooth walls. Smooth is timeless, you're never going to regret smooth years down the road when you try to sell your home, you might regret a texture that has fallen out of favor. I have paneled wainscoting and a paneled living room with built-in shelving and fireplace surround--eggshell on the paneling and wainscoting, flat on drywall above wainscoting and semigloss on fireplace surround and built-ins. . . no regrets. Best of luck with whatever you decide.

I am in the west, and smooth walls are very rare here. Our drywall guys had *never* done smooth, and the painters said they hardly ever saw it, except in historical (plaster wall) homes. On the other hand, I don't think I have ever seen textured walls when I've been back east.

I prefer the look of smooth, but heard from many people that it shows every flaw, particularly on long walls. I ended up with the lightest orange peel on the walls and knockdown on the ceiling. I think if you have texture, go as matte as you are comfortable with for paint. I think the shine emphasizes the texture, and I want to redo all my satin ceilings with matte paint.

You know the ceiling isn't straight, and unless it's really a mess...go with smooth whenever possible. Like people said above, texture is to just hide poor quality. Regarding paint- if it's sheetrock - Flat on the ceiling always unless you're going with some type of design feature. You can do flat or eggshell on walls. If it's paneling, or trim or any wood work....I prefer satin. I also prefer No VOC paints and like Benjamin Moore. Aura is very nice, but must be done very quickly, can not go over it at all, until the first coat has cured for a day or so. Must have a good painter who knows how to do it.

Our walls have what DH calls a knock down texture the "orange peel" sounds about right. I LOVE LOVE LOVE it. If ever paint chips, peals, fill holes... one can paint over the chip and it all blends in no need to re-mud!! SOOOOOO practical and easy to maintain!! FLAT and perfect is near impossible. The slightest imperfections show and if you have ever purchased a brand new ANYTHING you know there are ALWAYS imperfections. Ceilings are flat and walls are satin, all the time every time, in my world.

I'm a huge fan of smooth walls with the only texture coming from the paint roller. Matte finish!

I don't recall ever seeing a smooth wall in Texas :o