How to choose between using panels on a wall or wallpaper?

It depends , wallpaper looks great until you get tired of it and want to remove it , and that is no fun !!!! And is very time consuming . Panels would certainly do less damage to the wall . I would suggest , if you want to go with the wallpaper , look into removable wallpaper. There are a few good sites like wallsneedlove.com , tempaper.com , even check for it on Amazon . Good luck !

It depends on the look you’re going for! What’s the decor style you want for the room?

I have a very elegant living room, but I have a long wall behind my couch that doesn't have anything on it, so I was thinking of making it a focal point, but was thinking of paneling because it seems easier and I could find something that would compliment the elegance but not overpower it at the same time.

I would get some of the paintable wallpaper with a design that fits your personality. You can then paint the wall either the same color as the rest of the room or a different color all together. Amazon seems to have the most choices.

I think both are good choices, it really just depends on what you like better. I love those peel and stick wallpapers because they are not a permanent thing - you can change it up and easily remove it. Might be worth a try first since wood paneling like shiplap will be more expensive. They even make shiplap wallpaper - google it.