I would remove the chair rail. You have some terrific moldings - great size base and window trim- but the chair rail is first of all- installed too high, and secondly- too small. Look at the size of the chair rail next to the window trim- it is smaller than the window trim. (All of you should now be appalled- and gasping for air.)
I'm in need of your help. As you can tell by the pictures my front hallway, stairs and my hallway upstairs, are in need of a serious makeover! We do plan on putting a carpet runner down the stairs, they're a bit of a death trap. I do live in Ontario, Canada so mats are needed at the front. My main concerns are paint colour, seeing as how everything including the floor and doors are painted the same colour. It's my New Year's resolution to get this sorted out, we've lived in the house for 3 years and don't plan on moving anytime soon. Thanks for your time, looking forward to hearing from you.
For your stairs- I would go with a sisal runner. Simple and classic- a bit more modern than the paper- keeping the look current and fresh- while at the same time traditional and charming. Remove your wall decor- add a cool mirror like the one from Uttermost at the top of the post. I don't have a great shot of your wall space in the hall itself- but if you have a good location- add a sconce or two. Can you see it? I can and it looks terrific. A true makeover for your hallway. If you don't want to do wallpaper- do it anyway- you will thank me later. ;)