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@shibao I miss it too, but as others mentionned it has its drawbacks, mostly making a room very dark. It was a stunning aesthetic in bright rooms that could overcome that drawback, some cleverly used mirrors as well to compensate.
But boomers who enjoyed going to bars with such walls all started thinking they should make a home bar in their basement, and overused wood paneling so much in the 70s and 80s that the whole aesthetic now is ruined and will be associated with suffocating suburban basements for a couple of generations.