There are videos on-line about removing popcorn with water and vinegar. Take a look before you start.

I think the natural wood is fine. Paint the the walls a crisp gray to bring out the wood tone and fine a great print to add a bit of decor to the area. Another option would to paint the baseboard and the door frames and leave the doors the natural wood color:

Otherwise you can paint it all white, which I don't think it would be too much, but you have to carefully prep the surface or the paint will come off and look unsightly.

If I go all write do I go beige on the walls n white on everything else? What finish do u recommend (semi gloss)?