The main problem with knotty pine is that resin from the knots can leach out. If you do not properly prime pine prior to painting, it can damage the finished paint effect. To stop this, sand the area, wipe off dust residue and spot prime the knots with a pigmented shellac or oil-based primer product. If the piece has numerous pine knots, you will achieve a more-uniform paint effect if you sand and prime the whole area to be painted.
If you want a completely smooth surface over which to paint that shows no evidence of the knots, before you sand and prime, fill the knots with wood filler, smooth over them and allow them to dry.
As with clothes, decorating fashions come and go. For some home styles, including the log cabin, exposed timber features are timeless, while for others they are a throwback to the '70s that need help to give the home a more-contemporary look. Over the years, varnish can change color and take on a very orange tone. Completely sand the piece and start again by finishing it with a fresh coat of varnish or a stain. You could even try a darker finish such as the dark brown, or espresso, finish.
If you are going for a Cape Cod marine theme, accentuate the knots in your piece by treating it to a coat of a semitranslucent paint wash in a white or pale pastel shade, achieved by diluting paint with water. Play around with dilution ratios, until you achieve the translucency you desire. This effect is also known as pickling. If your knotty pine is very blond or pale, prestain the piece a shade or two darker, so that the wash effect will be dominant, since a wash on pale pine will not be very noticeable. With pickling, the knots will still be evident in the texture, yet you can enjoy a uniformity in color.