Why not a very light white wash

Refinishing all that wood will be a BIG job. Leave the wood alone and decorate the
room. I would add a beautiful patterned fabric: drapes for the window, an upholstered full-width padded headboard (JOANNE stores have big rectangular cushions you can cover), and an upholstered comfortable chair or two in the sitting area. You could even add a coordinating solid color area rug.

This is so “lake house”...it adds to the experience of being there...i would definitely put the energy into a beautiful lake house decor....and wait a while before you cover or change this feature..if you do change it paint would be the easiest way to go..especially if it will be a DIY

With out knowing your age or the size of the family..i would imagine it would be good to create an environment that offers comfy spaces to accommodate ...naps.. reading spots... and relaxing atmosphere..this room looks big enough to accommodate all that when you want a little quiet time....away from all the action