I think most of your idea's are spot on. Update lighting to can's, stainless steel shelving on picture wall , your change out of pull's, update counter tops and appliances (as budget allows) too. But to bring the clean lines of the modern vibe you are going to need to take off the existing oak doors and drawer fronts. Replace with either a tight grain (modern) wood door, or painted doors and purchase end skins too. The doors should have (hidden) 110 degree European hinges that can be mounted on the face frame of the existing box. Basically, a reface will bring you the modern edge that you love. Refacing is not really difficult and can be a great DIY project. The face frames can be either sanded and painted or skinned to match the doors. Leave out the middle men and deal directly with a specialty door company, and you'll save a lot of cash. I cannot advise of building half wall vs. island without a measured drawing of the room. The island should have a minimum of 30" of clear space in all directions to allow for egress. The back of the island should not be entering the living room space unless the same flooring is in the living room and kitchen. I have worked as a kitchen designer and presently work in whole house renovations. Don't forget the modern kitchens have a variety of lighting, so use a least 3 different types, such as undercabinet lighting, recessed can lights and artful pendant lighting too.

Try painting the mantel a rusty red/brown. I have the same style mantel and a red brick fireplace wall. The mantel was a veneer oak and didn't go with anything. I tried painting it a gray to go with the grout but that looked sad. So tried the rust in semi-gloss and it looks as if it belongs. I love the brick in its natural color. After painting the mantel, if you still don't like it you can always do something else.

The design needs more drawer bases. It needs room between the refrigerator and the wall. It needs some type of tray organizer or roll out above the fridge. It would be better if the earring bar was the same level as the counter. You would have more contiguous work space then. Bellmont is OK as a brand. What dooms it is the ability of the box store designers to be able to design in frameless cabinets. They are usually pretty limited in their knowledge on the required end cover panels and fillers. Which looks to be the case in that design. The price is likely low because of the missing accessory parts etc.

My daughter was based in Japan (Navy) for two years. There is a country that knows how to deal with little spaces. Then she came home to her condo in Harvard Sq. that was finished but a lot like yours. Tiny space...wish I had some pictures to share with you. It was all one room, except the small bathroom which she remodeled on the Japanese style. Anyway, under the windows was a shelf that ran all along that wall. It was sheet rocked, so part of the lower wall, but it gave the room such a good look. Can't explain it. That 6" shelf made the space look bigger. Kind of framed the windows and gave the wall some depth. She had some beautiful plants which did well with the natural light. Floors were flagstone. She had a kitchen very much like the picture I posted above and it suited her needs. Her bed...her biggest investment, was the Murphy bed. It was very comfortable. Two comfy arm chairs; coffee table, etc. No rugs. No window treatments. It was the cutest place. We should have kept it. Once rent control stopped in Cambridge, every condo soared in price. I found it..when my daughter owned it, (12 years ago) she had it decorated perfectly, but maybe you can see the shelf idea under the windows. This was the basement of a beautiful Victorian...steps away from Radcliffe and the Quad. I see the owner is getting $1650.00 month in rent. Yikes. https://hotpads.com/67-walker-st-cambridge-ma-02138-skxz4s/b/pad Ceilings were not as high as they appear in photos. Thanks for letting me share in your post.