I like the shoji plan and think it might be cheaper than the curtain, but it depends on the quality of screen and curtain of course. (You can get pretty cheap shoji screens on amazon that won't fit perfectly, for example, but if the wall and door are painted black behind it, you won't need perfect coverage.)

With the curtain, I'd do it across the entire wall, including the door.

Do you use the door or the air conditioner? If so, the curtain might be better for those hot days. You can easily pull it back and let it be ugly in exchange for AC.

Does much light come through the windows? Would it be worth replacing the door with a glass door? What is OUT there?

Is the door stained wood or painted? If it's painted, I'd repaint it the same color as the wall so it blends in a little better. Otherwise a nice glass door like @Fori suggested would be even better. Change out the outlets and outlet covers to white as well so that they disappear. The A/C unit isn't ideal, but otherwise the wall itself isn't that offensive. I like how you've pictured the shoji screens, but I think curtains would be more functional if you need to use the door or the A/C unit.

Can you relocate the ac unit to a different wall so it won’t interfere with the wall plans? Maybe use some great wallpaper. Do you use the door?

Thanks @Fori - Amazon for shoji screen is a great idea! The door opens up to an ugly side yard that is home to my husbands BBQ grill and an old fence. Nothing worth seeing there. We never use the AC unit because it is so loud - plus with the giant ceiling fan we never really need it.

The windows are east facing - so the light is somewhat faint... I would put some LED strips behind the shoji screens (If I end up going that direction)

@Kate We don't use the AC unit or the door. I wish I could remove them both and have the wall repaired, but that would break the bank. Best quote so far was upwards of 25k (owing to the cost of rebuilding the wall and moving electrical)

Thanks @pricklypearcactus - the door is painted. Perhaps it would be less of an eyesore if we painted it to match the walls and added some better looking hardware.

A side note - while you are working on the ceiling, consider installing some small recessed cans in the area. Thinking of the 2-3" diameter ones. How much does the a/c protrude from the wall?

Don't spend the money having a screen built Just install draw drapes in a texture to make the wall more interesting. Move the sectional slightly away from the walls so it 'floats' a bit in the room.

Get a large piece of art to cover over the electrical box on the wall.

Rather than drywall for the ceiling, I'd consider installing Armstrong's wood plank ceiling system to make the room a bit special.

@Jean Can lights are a good idea - and relatively cheap! SHould be a small matter to install them since we already have junction boxes in the ceiling. Great idea!

Yes, and if the fan was set up for a fan/light combo, then you already have a circuit that can be used. I think. I am not an electrician, but DH did that in a house we used to have. I dislike fanlight combos (the light hangs too low generally), and he somehow took the part of the circuit for the lights and instead sent it to recessed cans that he installed. The fan was then only a fan.

I like your backlit shoji screen idea--very practical and creative. You could probably buy two off-the-shelf wood shoji screens then hack one of them to fit the space. That would leave you some budget for fixing the ceiling and adding great lighting, getting a great big modern artwork such as Beverly posted, and buying a long, wide, low media piece for opposite wall.

Beverly's wall to wall ethnic black and white curtains + art + more attractive TV setup is a great way to go as well.

@BeverlyFLADeziner I love the patterned drapes! That could really add some interest to the wall (and certainly cheaper than shoji screen). You read my mind on the ceiling - I had originally wanted wood slats. Alsas... too expensive for hubby's taste. Even with my fancy rendering, I couldn't sway him. (although he did buy the white Eames lounge chair and Kardiel Woodrow box sofa based on this drawing... so I will count that as a partial win!)

https://www.armstrongceilings.com/residential/en-us/suspended-ceiling-systems/wood-look-ceiling-planks.html

It's not real wood. It's a lot less mess than drywall. You install the grid and then slide in the planks. No finishing is needed.

@BeverlyFLADeziner WOW - that info is a game changer! Sending that link to hubby right now. I might get my wood ceiling after all! Tank you Beverly!

Those look nice--have to see them in person if you have a low tolerance for faux wood but it does look like a better option.

If they don't work for you, a good lumberyard might be able to source better quality Philippine mahogany (AKA lauan/luan) panels. Think Eichler.

I was toying around with replacing the door, and surprised at how much of a difference it makes. The original door looks like it belongs on a warehouse... a nice looking door could be a low cost solution. (and let in some light through the frosted glass)

Nice, but I think it'd have to be orange with that wall art. :)

Beverly's ceiling idea is a good one. I wouldn't cover over the windows because I love the natural light :) so maybe drapes on each side. Though I would think a cool patterned wallpaper could look good. Love the door idea!

You know they make tons of other ceiling tiles, yes? are you willing to change those? do you want diff tiles?

How about black?

I love this look w/the wood beam (or if you do the wood slats)

I think they have some drop ceiling panels or planks that come like this^

or, just do it w/wood planks, mdf, flooring planks, beadboard, etc

Here's how they covered those ceiling tiles. $60. is that cheap enough?

https://www.frontporchmercantile.com/cover-acoustic-tile-ceiling/

How about this one? specifically for drop ceilings. and this girl w/the tutorial has great instructions.

https://sawdustgirl.com/installing-woodhaven-planks-and-hiding-ugly-drop-ceiling-grid/

this goes right over the drop ceiling

https://www.hgtv.com/design/remodel/interior-remodel/how-to-replace-a-drop-ceiling-with-beadboard-paneling

Following.

I really like Beverly's patterned drapes in the room.

@Beth H. : oooooohhhh yeeeeees! I am really feeling those wood slats! An accent wall wall would be much less expensive than doing that huge ceiling, and still bring some much needed warmth to the space.Love all the door ideas too. My front door is orange - this would bring some continuity to the space. Fabulous ideas - thank you so much!! PS - we ordered a mid-century modern style TV console table... can't wait to get rid of that old IKEA piece.

PSS - I just noticed the starburst escutcheon on the door. Nice touch :)