Glue cording into the stripe between and paint.
Nice idea from Janice.
Painted Paneling looks fine. just use an oil base primer as a first coat so it won't scratch off. It also can be wallpapered. fill the cracks with spackle, use pre mixed vinyl prep on walls and wall paper with a textured paper. use premixed glue on the paper. thin it out and put it on with a paint roller. you need a wallpaper table.
we painted our wood paneling! But either way, here are some wall decor ideas: