You can foreshorten the hall with a striped rug. Add bright colors like this and who'll care about how long it is? The unity of the black frames might make for a great gallery grouping. Cut out the shapes of all your pictures in butcher paper and lay them out on the floor to plan a grouping. Then tape the to the wall where you want them to see how they'll feel. If the grouping is the right size, you might mount a floating shelf under them. That will keep the floor clear but will anchor the decor wall.

Cloudyhaze....I think all of the options look good, but it just depends on the look you personally wish to have for your house, because painting the ceiling white will COMPLETELY change the look. My sister has just bought a place that had brick walls and exposed ceilings that had the beams painted mission brown and the ceiling was in some form of raw chipboard type material. She wanted to brighten the place up before she moved in and got it all painted white. It looks beautiful, but I personally would have thought of other options before painting the brick etc. She got a quote for plastering (sheeting) the sections in between the exposed ceiling beams and it was a lot more expensive than painting. If you are keen to paint just the panelling in the ceiling, then I would get additional quotes. I am no painter but I would suspect if it has shellac on it, it will just need an initial sealer on it, before putting on the 2 coats of flat ceiling paint. I think all of the options will look beautiful, because the high ceilings are the feature.........it just depends on whether you are going for a more rustic look, mid-century look , more modern look...I am not sure of what all the designs are called. Good Luck. Your house is gorgeous. My sister lives on Gold Coast BTW.

Consider combining the concept of console with shoe storage. Check out this cabinet for example. http://www.mattblatt.com.au/Credenza-Storage/Bakbo-Tall-Cabinet.aspx?p19566c17#19568 It has a mid century modern feel and comes in both blond and walnut timber. While this style of cabinet is a bit taller than the average console or buffet it is still low enough for a mirror over the top. The advantage is it's a stylish piece of furniture that has shelves for shoes, hidden behind doors. Although the entry/hall is long it is already full of doors so try not to fill it up with furniture. A single cool looking piece of furniture on either walls #1 or #3 with some fabulous artwork on wall #5 and whichever of #1 and #3 doesn't have the cabinet on.

providing the underlying structure of the floor is suitable you can run the floor boards in the any way you want and widthways boards in the hallway should make the space feel more spacious as it flows the same from inside to out and the herringbone floor would seem a little fussy unless it's a formal front entry