For the first, code requires you to follow any installation instructions that come with the luminaire. The only code-compliant and safe way I can think of to recess it would be to summon up your carpentry skills (or hire them), open up that part of the ceiling, and build a recessed section of ceiling slightly larger than the luminaire base.

Not knowing NYC codes, I don't know how tough that would be. It would require at least raising, and probably relocating, the existing box. If it's wired with conduit, it could be a moderately large project, involving opening more of the ceiling. That might kick in requirements that you bring all aspects of the installation up to current code. Might also require a building permit.

Also keep in mind that if you do something like this, you're probably stuck with using another luminaire of the same size and shape, should you ever want to replace it. Otherwise it's going to look odd.

For your second point, all the Wiremold products I'm familiar with look pretty utilitarian, though I haven't bought any in recent years. None of them is going to be subtle, and it's going to be tough to avoid having your living room look like a factory or school. You might consider having a dropped ceiling installed to hide the wiring.

Here again, the canopy is part of the luminare. I guess you could paint it the same color as the ceiling to make it less noticeable.

I'm thinking though of the great old 18th and 19th century houses I've seen in Europe, where the inside walls appear to be plaster or stucco over solid stone. Many times, all or nearly all of the wiring is on the surface with their Wiremold equivalent. But the houses are so interesting that you don't care what the wiring looks like. At least I don't. (They also have a lot fewer lights and receptacles than our houses.)

DavidR - great comments. Thank you very much

I "looks" exactly as it will look on the ceiling when the instructions for mounting are followed. And at any height, and at ten for certain......you will not see it as you do in the photo. Install as instructed or select another light. But unless you are ELEVEN feet tall, ? I think not a worry. You will be staring at the UNDERSIDE. Which means don't jam a rectangle into any size or shape "hole"

Jan has a good point. Most homeowners don't spend hours staring up at the ceiling. Your guests won't even glance there, as long as you keep them properly entertained! :)

Once you have your lights up, you'll probably be so busy enjoying your well-lit rooms that you won't even notice the lights' canopies.