The charring of wood as a method of preservation is nothing new and was known to European and Mediterranean builders as well as Asians. I have for years charred the bases of deck posts and such as a rot preventative. The practice is mentioned in John Fitchen's classic book Building Construction Before Mechanization. Some of the samples of this shown above are a bit crude. The most beautiful finishes of this type are rather labor intensive as some of the char can be brushed back off to some extent to reveal wood grain. The planter shown below has been coated on the interior with linseed oil, blackjack and turpentine and then set alight with a roofer's torch. The finish is cooked into the wood producing a carbonized insect and decay resistant surface. It gets filled with soil and so the char will be seen only at the edges.

For a cheaper, faster and possibly easier option, take a look at this for some inspiration. The lighter colour of the walls may reflect more light and be a stand out feature of your home. Click on the link and scroll to the image of the polished timber floor with the timber wall and ceiling. Polished timber floors with timber wall paneling

Yes, our harsh Australian environment does hammer our external finishes but if exposed timber is coated with a good quality finish initially ( i recommend 4 coats minimum ) then an ongoing maintenance coat every couple of years, your timber can still look great many years down the track. People just need to understand if you want that beautiful natural timber look you have to put time in to maintain it.

The house is fairly small from the photo but elevated on a basement or garage plinth. If the base is brick, leave it as is. But whatever colour you chose, eliminate contrasts so if, say, a soft French grey, paint the walls, window and door joinery and roof flashing the same colour. A contract could be the new deck rail, but I would even consider painting it the same colour as the basement to link the 2 levels or just the same as the top. A bright glossy front door could break up the monotone.