I used to have picture rails in an old house and loved them!! They offer so much artistic flexibility as you can vary the pictures easily, and create a stylish art-gallery look, especially against the ceiling roses and high ceilings. Using some exposed silver coloured wire to hang can modernize the look too. It sounds / looks like these rooms really have character - very envious:)

Oh dear, I think you are being a bit harsh in the house. I mean it when I say I love your house and see so much potential..there are many similar styles homes in out town, many have been redone, revamped into mid century master pieces. Your floors are stunning...but if you don't like it that much, maybe start again...check out all costs first, but I think you could do heaps with yours, our friends thought we had lost our minds when we purchased our house in the condition it was in. Embrace the style if you can but if it is just going to make you sad...start afresh

it is normal because of the style at the time (often more elaborate in the living area etc) but in our 1950's reno we were unable to match the profile we preferred (unless we had new cornice custom made at great expense) so we added complemetary new cornice to the new areas and where there had to be changes we carefully salvaged sections of cornice that were then used to seamlessly patch where necessary...the plasterer did a fabulous job, we kept some of the best vintage cornices and despite the labour cost we're very happy with the perfect patches

this mistake affects the future of how you live on the block and Council should be inspecting the site and have an opinion that may contradict the builders' wishful thinking so i would contact the building inspector immediately ..depending on the distance involved i would prefer to have the footings redone to suit the plans but there could be other options (at the builders' expense) post a copy of the house and site plans as there may be suggestions that could salvage this disaster