Ribbing doesn't tend to improve variegated yarn, unfortunately. It usually requires a specialty stitch with some stitch manipulation rather than a combination of knits and purls to break up those dashes of color if that's what you don't like about it. However, you can try garter stitch, seed, stitch, or moss stitch, which will break up the color somewhat.

If it's the pooling you don't like, there is a simple solution. Pooling happens when the dashes line up so you get irregular patches of color instead of the dashes. Sometimes it looks like a zebra with a bad paint job in the form of long semi-vertical (usually tilted one direction or the other) stripes. You can break up pooling by working with both ends of the yarn at once. You're using size 10 needles, so you could double the yarn. Pull a strand from the center of the skein and unwrap the one from the outside and hold them together while knitting. It will give you more of a tweedy effect. If you like the dashes, but not the pooling, you can increase the dashes and stop the pooling by alternating two rows from the inside of the skein with two rows from the outside of the skein. Carry the unused yarn strand up the side of the scarf.

My go-to texture for variegated yarns is entrelac, but that's no ideal for a scarf IMO because it is not reversible. You could try mitered squares, a two color brioche with a solid color as the contrasting color, or a feather and fan sort of ripple stitch (not generally suitable for a man's scarf). Variegated yarns can look great in illusion (shadow) knitting or fairisle.

Here are some examples of illusion knitting: http://www.freshislefibers.com/Patterns/shadowknittinglinks.htm
Illusion scarf patterns: http://www.google.com/search?sourceid=chrome&ie=UTF-8&q=illusion+scarf

Here's one manipulated stitch that's not too difficult: http://www.sheepinthecity.prettyposies.com/archives/000079.html

You can work it lengthwise for a different effect.

Here's linen stitch:

http://www.craftster.org/forum/index.php?topic=167254.0