What condition is the panelling in? The easiest thing would be 1 coat of primer and 2 coats of gloss in a light colour. That would make a massive difference and would hide the fake wood. Add some framed prints along the wall to give interest. Scandi look.
Looks like you will have to strip and line then . Light and space paint is good. For the pictures you could take lots of fast shots of a motif in motion eg child kicking a ball and put them all along the corridor.
Rather than try and make it appear light and bright, which will be tricky, why not embrace its natural darkness and paint the walls a dark colour. It will make the rooms leading off it seem much lighter and the dark walls will be a good foil for photos/prints etc. A bit like the first pic here (if the link works ok) www.houzz.com/ideabooks/286206/list/Paint-it-Black
Thanks for all ideas - I was thinking of placing a full-length mirror at the corner, but you would be able to see yourself walking towards it and could be a bit spooky at night. I think I can probably cope. Maybe.
I'm not a fan of that black corridor, I once viewed a house with something extremely similar and it was depressing just passing through. What about horizontal mirrors and good lighting - something like this I've seen a far better one but can't remember where (if I do I'll pop back)