I will repost this in the morning when the room is better lit!

a good idea,,,,,,,,light the TOMB.

A glacé ceiling would help light the room up and create some interest.

The lit picture you show highlights one of the problems with lighting a room with a single central fixture. I don't know if it is in your budget, but it would be helpful to add some recessed lighting to supplement it.

Or, buffet lamps on the sideboard would help. Something to "fill in" the lighting.

Is all that mottling on the walls and ceiling from the fixture or is there a texture in the room as well.

Lol! I couldn't figure out how to delete the post and repost with less deathly gallows-like pics.

Halloween is nearly here, but yeah....... I am not eating in there. Too scary : ) Seems only to be missing a spider in the cobweb? Hurry up with new photos !! EEKS.

The walls are classic gray Benjamin Moore. It's the light that casts those shadows along the wall. I will post a couple more pictures in the morning. The crummy camera on my phone coupled with the complete pitch darkness out side and low lighting from a single light source make the room appear as though it's underwater! I can't seem to figure out how to delete the post and start fresh with nicer daylight pics.
Anthropologie has a form of wallpaper that is supposedly very easy to remove. It's more like a decal. A friend has one of the mirrors in her entryway and it is beautiful. That said you are absolutely right, the application and removal would be pretty tricky.

Don't delete anything, just add pictures in a reply post.

I have never had a problem with lighting our several dining rooms (over the years) with a single light fixture: I usually have a 12-light chandelier with good # of watts. I don't put a mirror in the dining room, but the walls have been mostly light colors.
The problem with your chandelier is all the little glass panes cause the light distribution to be weird.

OK so start with a new rug in a lighter colour something in your favourite colours! Use the new area rug ( make sure it fits the room and for moving chairs) and pull some of those colours from the carpet to use on the walls. Either paint the ceiling a dramatic colour or maybe do the whole room dark on the bottom half and light on the upper half. Or if you are really good with measurements try some stripes (horizontally).
Get a new light fixture that will 'throw' lots of light. So something with clear glass shades and lots of bulbs that you can dim. A big mirror can help reflect light.
You pretty much have a blank slate. So get a piece of paper and draw out your room.

For real drama (will visually lower the ceiling and create intimate mood, here are colors BM suggests for classic gray - slate gray or midnight blue, but only if those colors work with rest of rooms visible from DR.

If you want a dramatic look I agree to pain the ceiling not wallpaper. I think you should go white with the walls if you paint the ceiling.

I think the Bella ring chandelier with all the crystal surfaces will cause the same shadowy issue you have now.

no wallpaper. it won't fix it.and a pita to remove, after the awful installation.

Couple of things I am pretty sure of in this room....one is...with only one small window you need to select a very light color for the walls...and add more lighting....another is to decide if you want to design this room to be used a lot... or just to be beautiful to look at and use only occasionally for big dinners....usually with a blank slate like this it is a good idea to define the feel you are after as well....homey?...striking but simple?....cozy and inviting?....elegant?....eclectic but cohesive?....or?

And there is an elephant in the room....the air conditioner is occupying the focal point in the room....and blocking half of the one small window....(besides being unsightly) I would look for a way to move ....or remove ....the unit ....maybe a ceiling fan would work?...

So the attached pictures aren't much better but they are a little bit clearer. There are two windows in the room. Once we recover from the cost of having just bought a house, we plan to knock out the window that does not currently house the air conditioning unit (which is a necessary evil in the summer only). A large picture windows will give us a beautiful view of the property and bring a lot more light into the room.

You have all sold me on not putting any wallpaper on the ceiling, but what are your thoughts on an accent wall? The room is so bland right now.

I am really struggling with what type of chandelier to buy. This room is used very often and we have young children. I really want the room to be warm and welcoming.

Light is clearly a problem :)

You’ll need to choose if you want a painted ceiling or an accent wall. Doing both would be too much. The new pictures are not loading for me but do you have a solid wall where an accent wall would make sense? Also you need to consider the colour choices and style in your house as this room is open to another room. You want a nice flow so consider colours that go with the colour palette of your home.

If insufficient natural light is a problem and the yard is outside, why not plan to replace that window with French doors? Or is the window shaded by an overgrown tree that can be pruned?

It's a second story room (raised basement) so doors wouldn't work. I would do ceiling or accent-- not both. Would wall paper on the back wall (the one with the air conditioner) be a bad idea?

I know you’re asking for help in selecting a light fixture, but no room exists in a vacuum. What is the style of the rest of your home? Because of the arched entry, this looks like an older home. You have children and use the room often, so may we assume you’re not looking for overly formal? I’d nix the gold-painted ceiling. In fact, I might consider a pale robin’s egg blue if you wanted to go for cozy. I usually like to find either a rug or fabric as inspiration for a room, but a rug under a dining room table can be tricky with little kids and spills, so maybe curtains in a fabric you like. Then, select a color for the walls and, finally, think about the light fixture. Please keep us posted!

As to getting a better pic....angle the camera so it is not aimed straight at the windows....as to a new picture window in the future...could it be the window that has the AC unit?....that way the view is seen as you walk by and the light goes further into the house.....with added plus of removing the eyesore AC ....as to the explained use and the desire for color....I would suggest painting the whole room a bright color...in the case of sort of dreary rooms I always think of yellow...like the sun...it is cheery and makes the most of the light that does enter the room...a warm...pale...golden yellow....perhaps....with that done the furniture will be a crisp contrast in color as is...or if you are handy and want to ...painting the table and chairs white or any light color .....would make the space more casual and inviting ...with this family gathering place feel ....the light fixture can be more casual to go with the theme you choose...I also like the pale sky blue ceiling idea...in general just a accent wall or ceiling treatment may not be enough....if you have a price or budget in mind for the ceiling light fixture .....that will help as a guide for suggestions

In general I would avoid wallpaper but as you seem to like pattern...you may want to do that with the curtains...

Another resource is Houzz photos...try typing in “pale yellow (or any color you like) dining rooms” ....for inspiration

Currey has some beautiful chandeliers but pricey. What's your budget for the light?

I like your teal painted sideboard. The Bella ring chandelier is awfully formal. I think your room calls for something a bit more casual. Some great artwork over the buffet, buffet lamps, a pretty centerpiece for the table to add some color and lightness, and lined curtains. What's your budget for changes in the room?

I agree with a few of the others, the Bella Ring seems a bit formal for your space. I really like your dining table and sideboard. Have you considered sticking to that style with your light fixture? Perhaps something like these? Both found on Wayfair.

Cute black kitty in spooky room. It's October.

In the daylight your dining room is not ugly and not nearly as spooky. Aside from some clutter on the sideboard, in daylight it is a very attractive room as is. Before you do anything else, change the light and see if that changes your perspective.

When you replace the light fixture, focus of getting one that will actually light up the room.

Is that window on the north side or otherwise gets little direct sunlight? If so, you might consider an all white room and/or hanging a mirror or, better yet, shelving w/mirrored back wall between the shelves for a place for the items cluttering your sideboard and to help reflect what light you do get.

Do change the drapes to your favorite bright bold beautiful color using a wider double rod so you can have your drapes cover only the side window frames -- NOT the window glass. Do size and hang your new drapes/sheers so they don't actually touch/drag sloppily on the floor -- that sloppy look is one fad that needs to die..

You could a fabric runner to your table with the same color(s) as your drapes and a shallow decorative bowl in the center that might help reflect light from your overhead fixture or at least add color/interest to the room..

Would not want an accent wall in a relatively small dining room.

I also think if it’s pattern your looking for curtains and a rug could fill that need instead of wallpaper. If you are looking to brighten the space I think white walls are a good choice and very on trend.