Perhaps consider making the node icons easier to see. It's rather hard to tell which node has unread stuff in it, with the default icons. This is really my only complaint. The peach doesn't bother me, goes well with the paper look.
Much better.I think however, a nice custom navigation would set this style off beautifully. I've never been a fan of the default navigation and by looking at the custom work you've done I think this is something you could easily manage. Nice work regardless.