Sound like a good plan. Remove the carpet and put in something other than that shag looking.

See how you like that, then you may want to paint more of the dark wood, white.

For sure remove the bows and the sign over the door. Looks like the dining room wallpaper needs to be removed also.

I think you should paint the walls the same white as the spindles. Paint the risers white, too. Paint the walls the same white so the doors and the high window all blend in.

I would remove everything from the shelf. If you have to have something there, then get some artificial plants in large containers.

If you can find a wallpaper like this, it would look really elegant.