What wall colors would complement a primitive style border like the one I love, and how can I update the 70s green wallpaper and yellow plastic bottom half without making my small bathroom feel dark and narrow?

We just bought our house and decided to redo our shower, but now I’m realizing the rest of the bathroom is stuck in the 70s. We’ve got green wallpaper with grapes all over it (I know, pretty jealous material, right? 😏 lol) and the bottom half of the wall is a creamy yellow plastic material 🤦‍♀️ I’m into a more primitive style and love the natural wood door and window frame. I really like the wall border in the picture I included and my wall decor and shower curtain match it. So, I’m wondering what color would you paint the walls to go with this wall border? And what should I do with the bottom part? I’m hesitant to rip it down and was thinking of painting it instead…. Maybe a tan color on top and burgundy on the bottom with the boarder in between? Or a tan paint with the boarder on top? I don’t want the whole bathroom to be too dark since it’s already small and narrow. Has anyone ever painted over plastic like this before? And any ideas on how to cover up this ugly floor on a budget?