I'd key off of your floor - backsplash in a similar-but-smaller tile, and the counter in a similar tone. Here's a DIY counter solution.

http://www.apartmenttherapy.com/ny/at-email/the-under-400-kitchen-makeoverin-a-box-rustoleum-transformations-in-the-test-lab-139345

I have the same cupboards as you. Mine got a new coat of paint (they are ready for recoat) and a hardware update. I took off the center pulls and and filled the holes. Inexpensive "bronze" pulls and knobs were in keeping with the vintage kitchen look I maintained. Cupboards with plates and glasses had the doors panels cut out and will be outfitted with glass in the future. I would suggest a light colored tile backsplash (check out the new tile adhesive strips at Lowes) and Ikea's inexpensive wood countertops. I love your floors, don't change a thing. Keep in mind, mine is a work in progress...

Phone your local hardware store such as Home Depot or Lowe's and specialty paint outlets. They usually carry some brand of countertop paint, some can be pretty messy. Also specialty painters can redo countertops with an epoxy resin type material. Surface prep is pretty key though. I have also seen at the home shows and I am not sure if they have it in the States but is a layer of stone that you can also overlay on the countertop.

I've heard of people who have painted their countertops right before they sell so not sure what the wear is like. They said the smell is awful for about 3 days!
I found a cool idea for a backsplash at Home Depot. They are stick on tiles that look like pressed tin! They have different colors and patterns and it's very reasonable. I saw them online and thought they would be cheesy looking, but I saw them in the store and they are nice. Just a thought....

White cabinets always look nice...BUT--I had white cabinets, once. NEVER AGAIN!! It's like wearing white pants in a BBQ restaurant! I was always cleaning and wiping them down. They showed everything. Even if you went with a darker tone of off-white, would help a little. @iansmom--I also saw the backsplash tiles. I am thinking about using them, also. Definitely looks like something a do-it-your-selfer could do!

Hi - yes, you can paint laminate countertops, but with the wear and tear a kitchen gets, I wouldn't recommend it unless it is for a very short-term fix. Another inexpensive fix is ceramic tile - you can go right over the p.lam. Ask at your home improvement store about the process involved. You could use any kind of tile OK for horizontal surfaces. Even granite tile can be very inexpensive, and with a 12x12 tile (of any material) you would have fewer grout lines. Porcelain tile would be another good choice. As for color, if you want the cabinets to be white, pick a counter tile that picks up the color and intensity of the floor, and then use a backplash tile (vary the size) with more intense colorations. I would go with a semi-rustic looking tile (as opposed to glass, etc.) to coordinate with the floor tile. Add you accents in with accessories.

I sell real estate and painting counter tops does work and it can last up to 10 years. I also agree with someone else's suggestion of taking off you knobs. They are presently placed in a location that dates the style even more. I am not sure what your backsplash is out of but I would paint that too, or tile over it. From experience, I would say unless you are going to install new cabinets go the most economical route because when you sell the new buyers will still want a new kitchen. Your updates will make you happy and make your house look better when the time comes to sell but it will not necessarily increase your value. Another tip is that you can tile over the formica if you are installing a new sink...it gets a little more complicated due to the additional height of the tile. Have you gone to Ikea to check out their cabinets, counter tops, and appliances? You may be able to install new cabinets for less than you think.

Make sure you sand and prime your cabinets first and use a satin paint on them. I would also work on incorporating your floor color into the walls and backsplash. Maybe a nice goldish yellow color? Something lighter since your cabinets and appliances will be white. You could go with tile on your countertops. I can't recommend painting them since I've never tried but I'd definitely do lots of research on it before attempting to do so. If you find hardware you like then do a search for the same style online. I've found $12 pulls at Lowes that were also on eBay for $1.20 so it definitely pays to do a quick online search.

HI, I would paint the cabinets white and get possible take a door off or two and merchandise it with simple white dishes. Take a look at chris kauffmans blog for some unbelievable ideas and inspiration!!

Check on Granicrete. It is a farely new product and has gotten good reviews. It goes right over your exhisting formica, made to look like marble, travertine, granite etc in any color and a fraction of the cost of real stone. We are considering it for our kitchen. I've also heard it is indestructible and low maintenance.

If you like the counters, I think that once you paint the cabinets, it will dramatically change the dark feel of the room, and you may not want to change them. But before painting, like mrs2shoes pointed out, they will be high maintenance. I have honey oak cabinets that had not been washed in 25 years. I scrubbed them with Murphy's Soap & applied Danish Oil and polyurethane & new hardware. They look brand new and I did not take the doors off like you'll have to do if you paint. You may consider doing that and then staining the cabinets with a white wash stain before painting them.

I would use butcherblock counters if you can afford them. They aren't too expensive for a smaller counter space and go really nicely with all the white.
Leave the tile, which will look brighter once you've updated everything else.

Lowes sells the Rustoleum countertop paint.. has gotten good reviews:
http://www.rustoleum.com/CBGProduct.asp?pid=208

You will get a much better finish on the cabinets if you use an HVLP sprayer
The Earlex has similarly gotten good reviews :
http://www.amazon.com/Earlex-HV3000-Spray-Station-Sprayer/dp/B000E24CDA/ref=pd_cp_hi_2

I like deboso's idea to paint the cabinets, change the hardware and see where you land. The realtor also had good advice to keep resale in mind. Attached is a very simple kitchen that was getting ready for the market - painted the old dated cabinets and we installed a new, lighter color laminate top. I don't know that I would recommend painting the countertops, but my two suggestions would be: 1- find a good handyman and go over the top of the existing top with a new laminate of your liking and/or 2- there is a product called Bondera Tile Mat that won some pretty great accolades for DIY projects http://www.bonderatilematset.com/ - with this product you could either do the countertop and backsplash or just put a new backsplash up to the cabinets.

I do residential real estate analysis in the southeast. Go to open houses or new construction model homes with a similar price point to make sure your improvements will make you competitive in your submarket should you decide to sell within the next 3-5 years. Also, if you are planning on staying in your home over 5 years, do the improvements in stages, starting with painting the cabinets.
Also I have painted kitchen cabinets before, so my best advice is no matter what it takes, PRIME with the highest quality primer you can afford, before you paint those cabinets. Primers are formulated to act as a chemical binder between to unlike surfaces. The job will look more professional and last longer if you do a good job priming.

Thank you to all that have written regarding our countertop/cabinet conundrum! I very much appreciate all the feedback that has been provided. We will be investigating all the suggestions that have been provided and establishing our budget before diving in to any projects.

Thank you again for all your feedback :)

I would paint the Cabinets either an antique white or a light Gray, and keep the hardwear and paint it Black or oil rubbed bronze. The counter tops could then stay the same. Or, you could get the butcher block counter tops from Ikea and stain them dark. That whole look would be amazing!

Your solution for the formica, cover it with concrete. I recommend a product called SKIMSTONE. I have used it in several places, countertops, floors, walls. It is not necessary to remove the formica, also covers tile, fiberglass etc. Check my business www.artworksspokane.com.

What did you finally do with your kitchen?