What to do with the Walls?

Upstairs hall walls in mauve

Last night while tiling we considered the bathroom walls. They are in terrible shape. Thanks to a lot of poor patchwork, large cracks, crags and holes - they are in worse shape than the kitchen. No wonder they hid everything with wallpaper. In our upstairs hallway, the plaster problems are hidden behind some textured paintable wallpaper that I am actually quite fond of. Mike tolerates it. So we are now considering a second option to a massive repair job on the walls - paintable wallpaper in a different pattern. We haven't decided either way, we're still debating what would be more painful and time consuming since wallpaper isn't exactly a cinch to hang. They do have some interesting options out there- patterns, stripes, textures, plain...