Have it painted a light color. You can change the color but keep the texture.

Here are some ideas.

I agree with painting, but if that is a no go hang rods and create fabric walls here and there to lighten some of the walls. Its amazing what changing 1 wall will do for a room. You could also do peelable wallpaper in the wainscoting panels.

That wood is gorgeous! How about installing some beautiful sconces inside the panels? Then hang a beautiful framed art. And then introduce a new, taller lamp and organize the TV stand and other misc pieces you have that look off-balanced. Remove the white/oddly placed thing by the window and replace the cheap louver and install a beautiful rod and curtain (floor length) to add color. You have a great room....

You could upholster the walls.

Oftentimes, people come to this site because they want people to tell them to paint the wood or brick or whatever it is. I don't know if that is your case. But if you have any interest in preserving the woodwork, in lieu of painting it, you could have upholstery panels made. You could cover some of the wood - or all of the wood. Upholstering walls is actually the new wallpaper, so to speak. It offers a sense of luxury/opulence to a space, and in some instances can have other benefits, as well - in terms of incorporating soundproofing, insulation, etc.

Fabric on walls is a great look that is often used in higher end design.

As another option, you could break up all the wood with large canvas art pieces, paintings, etc. - or you could place upholstered wall hangings around the room, as shown below.

Hope some of this helps!

I agree-lots of lighter colored fabrics, textiles, and artwork. Floor lamps, table lamps, etc. Pictures of the entire space with good lighting so we can see what you're working with would help get you more suggestions.