paint

add a chicken wire basket take the grape vine and shutter away

http://www.houzz.com/ideabooks/49047847/thumbs/entry

Here's an idea book.

A brighter runner on the stairs.
Matching art at top of the stairs and beyond the other arch.
Clock, stool, and small topiaries on the ledge.
And if you like wallpaper, put it on the stairway wall only.

I'm not a big fan of the way your carpet is installed on stairs. Just my spin. I would at least conside replacing it with something with less pile and a bit bold to liven up the space. Perhaps coordinate framed art as in picture one. You could up the ante in the project department and redo stair as in picture two, and later install a runner which shows off your wood but still gives the kids' toes something to grab onto!

I'm not a fan of carpet on the stairs like that either, but if you can't do anything about that right now I would at least paint the spindles white/off-white to match your trim! And it's strange to me that there's a hand rail attached to the wall since you have a rail on the other side. Is it a code thing? Anywhere I've lived, you only need 1 rail. Unless you need it, I would take off the additional rail and fill in the holes & paint. Then do a gallery wall of family photos, etc. up that wall. There are lots of gallery wall ideas and examples on Houzz and Pinterest. Mix in a cool candle sconce of some kind.

I think the carpet on the sides of the stairs dates the space. Consider the runner option or just recarpeting the stairs & hallway. Paint or stain would help update the banister and wood trim. Also consider adding a unique chandelier above too. Then with accessories add something updated like green reeds in a vase and an inviting entry rug. I love Feizy rugs, their durable and have fun patterns to freshen up a space.

Not sure of your budget but my suggestions are to update the carpet. The carpet you now have is dated plus its along side the molding. Or if your budget doesn't warrant the replacement purchase a runner and have it installed with brass rods. I would also eplace the molding along the stairs with a high provincial style, stain the banisters a darker color. Where the enclave is remove the piece of molding going across. Add some large piece of Art to your liking along the wall going up the stairway.

Chang the globe light fixture to something a little more interesting and put an assortment of colorful large pottery/vases on the ledge as a focal point. Change carpet on stairs if budget allows to something with a fun pattern and paint the molding and rails white.

I would suggest getting a wrought iron railing, it is such an easy way to make an update to a staircase. This image is the perfect example! Very classic, updated, with a slight pop of color. I also think the staircase would look beautiful with a richer wood stain. Best of luck to you in in the completion of this project!

Adding color to the walls and dramatic lighting will create a wonderful ambiance..

"it's strange to me that there's a hand rail attached to the wall since you have a rail on the other side. Is it a code thing? Anywhere I've lived, you only need 1 rail." --

You normally only need 1 Handrail, but the railing on the left is only a GUARD rail.

http://publicecodes.cyberregs.com/icod/irc/2012/icod_irc_2012_3_sec012.htm

A HANDRAIL must be continuous.

R311.7.8.2 Continuity.

Handrails for stairways shall be continuous for the full length of the flight, from a point directly above the top riser of the flight to a point directly above the lowest riser of the flight. Handrail ends shall be returned or shall terminate in newel posts or safety terminals. Handrails adjacent to a wall shall have a space of not less than 11/2 inch (38 mm) between the wall and the handrails.

http://publicecodes.cyberregs.com/icod/irc/2012/icod_irc_2012_3_sec011.htm

Thus, the requirement for the HANDRAIL on the wall side.

If the handrail on the right is a "must", I would paint it the same color as the wall. The rail with spindles I would paint a glossy black, then find a carpet runner in a bold black pattern (see photo). Find something more exotic for the niche at the top of the stairway---maybe a potted palm and a couple of ceramic pots in varying heights. Maybe pool a colorful throw at the base of the potted palm. Looks as though you've collected some country-look items---they are cute, but they don't belong in this style house!

Just jumping in... Hoping that we agree to disagree is ok... If the whole home has a rustic/ country flair, then the current niche is just fine.