Wainscoting - Yea or Nay?

Photo courtesy of Project Nursery

I'm in the process of coming up with a design for my daughter's room renovation and I'm contemplating putting up wainscoting. I love the look of it and can imagine it well with the design I have envisioned but I'm a little hesitant when it comes to function.

Will it make it difficult when it comes to furniture placement or any type of wall hangings? ie. growth chart, hair bow holder ect. Is it too limiting??

Do you have wainscoting in any rooms? Do you like it? Did you put it up yourself? Thoughts? Opinions? Suggestions?

I appreciate the feedback!