Dark colors do not make a space look smaller, quite the opposite. What defines a space is what makes it look small. For instance, light can fill the corners of a white walled room with shadows and you find yourself inside a white box.

Go ahead and paint the room any color you love. My entire lower level is painted B.M. Racoon Hollow…walls and ceiling, Super White trim. Looks beautiful in the daylight and even better at night when the lights are on.