How about some fabricated newel posts or half columns maybe 8"x8" with raised panel sides and a cap, at the end of each wall and then a raised paneled wainscote going up the stairs. Get rid of the handrail with brackets and incorporate a handrail into the top of the wainscoting.

Sounds like a great idea... I had no idea what "newel" posts were named but that is exactly what I was looking for and did not realize they came fabricated.

I had to google the newel post and the wainscote with handrail and I found this link for anyone else interested.

Here is a link that might be useful: tight staircase wainscoting handrail project

Thats what I was talking about! I've done just that for clients.
What I meant though about fabricating a newel was to 45 the edges of four 1x8s and wrap a double 2x4 post to make it look like a solid column. There are also ways to make them like raised or recessed panels on the side of each column.

If you want something with simple lines, you could also do picture frame molding.

Here is a link that might be useful: stair molding

Wow that is a great link, and a good tool mentioned. I may be able to actually do that myself.

Great link and pics. (Except for his wife's bruised bum.)

But unless you plan on ornamenting the room with complementary wainscotting or decor it may look odd to have lavished all that attention on just the stairs. Also, check out building code restrictions re the handrail. There is a minimum space required between the rail and wall.