I really appreciate everyone's comments. They have helped me tremendously. I thought a wall needed to be a different color to seperate the spaces but now I realize they all need to be the same color. I have a few different colors picked out but the one I'm leaning to is a little lighter than the main color and doesn't have a green undertone to it. Once I finish painting and decorating my bathroom, I will tackle this room. Thanks for eveyone's advice! I will post new pics once it's complete!

I would keep the half wall the same color as the rest of the paint in the room. It will help the space look more cohesive and appear larger. An accent wall, which you would in effect be creating by keeping it a different color, is typically supposed to be a fireplace wall OR in absence of fireplace, the sofa wall. If you must paint it, Denise has the right idea of sticking with a darker version of your current wall color. For the inset up top, you need to consider what you are going to put there before deciding on a color. If you are going to do a lighted element, it will play nicely off a dark color. If you are doing an art installation, take the colors into account...what color is complementary/contrasts nicely with the artwork? I do think you definitely need to paint the outlet covers to match the wall color so they blend. Personally, I would take advantage of the high outlets to put a lighted installation in the niche.

I think the half wall and shelf would make more sense painted a darker shade of the wall color. They'd be accented, but not so emphasized. The dark brown makes them focal points, but I don't think they should be. Unless all your trimwork will be in a dark brown. Then it might work.

Personally I'n not crazy about the yellowish wall color contrasting with the red, although it could just be the light. I'd go more of a sandy/tan with the red and brown.