Hi inkwitch, you could make the room appear taller if you create a creating a tray ceiling look by putting some crown moldings around the ceiling and just paint the center portion brown.

I don't want to alarm you, just FYI. It was common in stippling compounds from the 70's and 80's to contain vermiculite. Vermiculite could contain asbestos. If you suspect your popcorn to be from this era, it may be worth while taking a test before it is broken down into dust. it is a bit expensive, however you should know what your dealing with and how to proceed safely.

I do love the idea above with the thick while moldings around the ceiling. They just seem to make a room more grand then it really is. Also, use matte or ceiling paint for ceilings. You want to avoid any gloss/shine here since they will only make lumps, bumps stand out more.

Interesting info about the stippling material! As it happens, I think it was stippled as a result of a fire since 2000 by owners who were stylistically stuck in the 80s! House was built in 1960.

If I had the $$, I"d take the entire ceiling down and replace it ABOVE the rafters for a wonderful beamed effect and extra inches! I want to paint this room once, so I"m dithering over the color before I commit.

I think chocolate will make the already short room look even more so unless you do as David Yuen suggested. If you don't want to paint the ceiling opt for a light to medium tone so it's not a drastic transition from wall to ceiling.