I'm not visualizing how fake wooden beams will cover anything up.
It'm not just trying to cover things up. I want to take down the existing sheetrock and inspect all the joists, put in trellis bracing, or possibly double some of the studs to help stiffen up the 2nd story floor. Suspended ceiling would then be easier to put back in. I haven't done it because I wouldn't tackle doing a sheetrock ceiling myself, and suspended would probably look better. I think a sheetrock ceiling would only look good if it was textured, since the room is large (400sq ft) and joists are just not that even after 40 years.
Well, if you've had a structural engineer inspect the ceiling, and he/she says it's normal settling/age, and not indicative of bigger problems, some cosmetic beams aligned with the joist waves would break up the eye-lines that allow you to see the imperfections. Is the 2nd story floor above that room bouncy or giving indications of being weak, or sagging? And I mean real weakness/sagging, not just squeaky floor boards.
Granted, if you've got a wave every 16" on center or whatever, and the waves are more than an inch or so, then no, the beams wouldn't hide it. Or maybe it's only visible when the light in the room is right?
If the problem is just cosmetic, cosmetic non load-bearing beams, they even make them in paintable/stainble foam these days, will hide a LOT of sins, and do so way easier and cheaper than drywall or a suspended ceiling system would.
Not the same situation, but I had a 1st floor bedroom with a closet that dead-ended against the front foyer of my bungalow style house. We wanted it as an office/den since there were four more bedrooms upstairs, so I put interior glass French doors on the room side of the closet opening, and I ripped out the back wall of the closet to extend the rather claustrophobic foyer a bit. That left a gap in the plaster and lath walls and the ceiling, and rather than fill in the gaps and try to merge everything evenly which would have been hard because there never was lath where the wall studs were, I just put in hollow box-beams I constructed myself over the gap, and made a decorative arch which dressed up the foyer nicely.