That Is The Question

To beadboard or not to beadboard?  That is the question.  You can't really see it in this crappy pic I took with my phone last night, but the walls are pretty yucky-looking in here.  Not, however, as yucky-looking as they used to be...When I bought the house, this bathroom had vinyl flooring nailed to the walls about halfway up.  Light tan vinyl flooring with a brassy-looking tack strip at the top of it.  Ugly.  I guess because whoever did the walls knew they'd be nailing ugly vinyl to it, they didn't bother to tape and mud very well on the bottom half of the walls.   (If you look just to the right of Gracie Cat, who is looking askance at the paint job in progress, you can see the line in the wall where the strip used to be.)

Because of all that, I'm thinking of putting beadboard on the walls.    I need a second opinion though.  (And a third and a fourth, and so on...)  Do y'all think it would look okay?  Or do you think it would chop up the area and make it look even smaller than it already is?  The other thing I'm thinking is that the light blue turned out lighter and more baby-blue on the walls than I thought it would, so putting white beadboard in there might make it look even more like a baby's room.

So.  Beadboard?  Or no beadboard?