I think I would keep the knotty pine and replace the floor tile.

Thanks for the comment, the floors are going....can't decide what to do with the walls

I found the wide white trim around my log home windows made looking out them soooo bright I painted them a color or added new lighter wood trim after installing new wood windows... though I do love white! IF you haven't lived with a lot of wood it does get rather old/dark... but if it does you can always paint or ww later... hard to go backwards, so I often take mini steps 'til I 'know'!

I had dark wood paneling (real boards, not the fake 70s paneling) in my large combo living/dining room (16x35). It wasn't pine, but it was stained dark. The trim was white. It did not look as bright as the photo in the post above. It was like a cave. We painted the entire room a warm white and the transformation was wonderful. The house was cottage style and the painted wood was perfect.

Aww...I happen to love knotty pine. Please don't paint it, sand it and make it lighter, or at the most pickle it, so that the grain shows through.