What material for this project?

[Salty]

I do like improving the place and I will continue to do so. But, I am holding back on elaborate projects until I see where things settle. We had planned on selling this house soon but it seems that will have to wait.

Now, this doesn't look so bad does it?

[pelligrini]

It doesn't look bad, better than a cracked ceiling. You might consider extending the moulding around the room at a later date, if the funds are available. That would tie the top of the opening in with the rest of the room.

[Salty]

I considered extending the cove.
But I would have to not only go around the dinning room, I would also have to go down the hall and around the living room. After all that, the other rooms would look out of place and I'd have to do the bedrooms and the kitchen.
Not right now anyway.