Yes - you can make a big difference with paint. How about painting the cabinets white and the walls a wonderful warm light tan? A countertop to go with it might be white with a little warm light tan accents in it. Keep in mind that your floors have a lot of orange color to them. For a unified look, you want to consider all the colors in the room. Another issue to keep in mind is how much sun and shade this room gets. If it gets very little sun, you'll want to keep all the colors very light and fresh. Also reflective surfaces and mirrors will help greatly with that.

Personally I think your cabinets are classic and would go with the pretty ceramic knobs and get a new back splash. As for the counters I like quartz. One brand, Silestone, even has antimicrobial qualities.

To modernize this space you need to add some color and contrast to break up all of that wood. I would paint the cabinets to light pastel color that fits your taste. I would paint the stair railing white. Definitley update the backsplash to a mosaiq glass tile and change the counters to a quarts that coordinates. paint the dining table and the hutch as well. I found this picture that has the colors I am thinking of.

It's a lot of wood, but it's beautiful wood. I would neither paint, not use those ceramic knobs. I'd change the hardware to a modern satin nickel, something sleek. Remove the small open cabinets on each side of the window and replace the valance with a modern roman shade. Add a runner to the table for a spot of color.

I might replace the counters with something black. Looks like the room gets enough light to handle it and it would add a lot of punch.

I agree not to paint. I would make the hardware changes and perhaps the other suggestions from the posters above. Quartz counter tops would look great too. After you lived there for awhile and still don't like it, then paint the cabinets.

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Maybe the tops white and the bottoms a Navy gray blue or a dark sage green? I think the house looks very country 90's because of all the wood.

Just changing the window coverings will make a huge difference in the space.

Thanks to everyone who made suggestions. I should say, this is a picture we took when viewing the house before we bought it -- we haven't moved in yet, so none of this furniture will be staying!

groveraxle, thanks for the Photoshop mock-up... very cool! The room does have a totally different feel.