put bead board over top with a little trim, for some character

I agree with sullivan design... i think you need some under cabinet lighting and some pendants above the island in lieu of the hanging pot rack.

It is indeed difficult to see some of what's going on in here, but the wall cabinets really make the room seem short (your eye is not drawn up to the ceiling) which makes a room appear shorter. Perhaps you could paint them a shade lighter or darker than you paint the walls, in order to draw the eye upwards to the ceiling. Is that an air conditioning unit above the wall cabinets? If so, perhaps a wall color that is the same as the unit would be good in order to mask it a bit. I would fill in the space above the wall cabinets with some cool sculptures, glass art or ceramics -- but keep it in the same tone so as not to detract to much. You want to draw the eye away from that A/C unit and to something pretty. If you do light (white/off white) on the walls, then you need to bring in some color elsewhere in the kitchen so it's not to institutional. Paint the ceiling a cool color to give the illusion of height and a pop of color. I would paint the base cabinets a few shades darker than the wall cabinets. Given that your tile is staying, I would bring in a warm color for you cabinets. Paint the island a different color than the other base cabinets so it stands out a bit. And if you have black appliances, perhaps bring in a black counter top to tie it in to the overall scheme. Go with a quarts (Caesarstone, Silestone) as black granite is so overused (in my opinion). And maybe hang a valance over the window to add some texture (so the room is not too 'hard') and to add a bit of color that coordinates with the other colors. Depending on the feel you want to achieve, that will determine the scale of print (large vs. something smaller). I would keep the field of the fabric in line with the color of the walls so it doesn't dominate too much. New hardware for the cabinets.

Thanks for all the advice. A little background: Attached are some images of the same kitchen in daylight. We are thinking of keeping the wood cabinets unpainted (except for the island) because I like natural wood, and we have picked a light colored counter to help brighten the room and go with the island painted light. Would the cream counter look jarring against the black appliances? Do you think the pot rock and sconces would be too much? There are flourescent lights over two of the counters already but we love natural light whenever possible. Unfortunately it is a darkish room.

(the current counters are laminate and they are buckling)

One other thing: we are having trouble with replacing the laminate which is coming off from under and around the cabinets. The doors are in fine shape but we probably need to paint the side of this cabinet, for example, and could make it match the island...

It looks like your counter tops are cream. Often times white can make cream look dirty. I like your idea of painting the center island, maybe paint it a shade like your floor - lighter or darker than your floor. Either way, it will have a bright appearance due to paint vs. wood. Good luck.

You could have your high top chair seats reupholstered to lighten things up as well.