Here's what I did with mine. The color didn't photo well here but it's a very pale yellow. Hand painting is cooler than wallpaper because you can do things like this (I couldn't continue the design because it was headed to a place where the cabinet was mere inches from the wall and I couldn't get in there). And if you're ever tired of it, you can paint it back out in minutes. Anyway, I dunno how good it looks in pictures, but everyone who sees the room in person gasps in surprise and then says nice things about it, and it wasn't that hard to learn how to do it -- you can do something like this if you want, or any number of faux treatments... like I really like the shiny and dull stripes in the same color paint if you're into a more modern look, and the beadboard if you're into a warmer look. :) Did you look at the bathrooms thread in the Gallery?

wallpaper would look nice

If you have, pictures usually give a better response.

I would paint all one color but I am not a fan of accent walls.