removing the plate rail and wavy valance will do wonders. so will taking off the striped wallpaper. consider a counter depth not-black fridge if you have room in your basement or garage for this fridge.

'nicer' counter stools and a rug in that area will distract from your distinctive flooring.

I would replace the floor with a light colored hardwood. Then you can make decisions about the other colors.

if you don't like the current layout i wouldnt bother to redo the counters with other than something inexpensive. and if you are regularly eating at the table for 2 and not using the counter stools, remove all but 1, just for a 'percher'.

There is no striped wallpaper. This is wood panelling that the previous owner painted. My intent was to extend the top of the counter to provide an overhang for the bar stools, and the stools that are there are just a temporary fix.

ok i'm glad about the paper! that's one messy project you dont have to do.

Is the floor real brick, or is it some kind of linoleum? It looks like real brick to me. You could possibly try painting the floor a solid color. I would keep your cabinets (you have lots of storage space, yay!) and paint them too, and switch out that top rail with molding. I would try to brighten the space up with light colors. You could play up the country style elements with lots of shades of white for a cottage-y feel. I would also replace the ceiling light.

It looks like you have a lot of fun choices ahead. Good luck!

When you are replacing counters, it might be possible to remove the outer peninsula - the one with the stools, and just go with a pretty colonial style or farmhouse table. Since the rest of the trim in the house is white, paint the trim around the window white also. A farmhouse sink with bridge faucet would add more charm, though they can get expensive. Personally, I would go with lighter countertops and backsplash. I have wood cabinets but a bright kitchen. You can have the panel removed from some of the cabinetry and replaced with glass. On just a quick look I think maybe glass in the panels of the small top upper cabinets each side of the sink and the entire upper corner cabinet. however, I am not standing in the room, so take some time to think about it. I have seen some kitchens where all of the small upper cabinets had glass.

The floor is real brick - old Chicago

I like the galley rail. When we redid our 1950s kitchen recently we special ordered some to go with our new cabinets. To me it adds character and helps tie modernization of the kitchen to the past.

What kind of floor? Very busy. I've seen similar that was either linoleum or vinyl. Would change if practical.

What do you think of the floor? (OP says it is real brick) I think the original brick would be pretty. There is a home with a reclaimed brick floor in my neighborhood and I like it a lot. It is possible to strip the paint off if you don't like the pattern, or repaint. Stripping is messy, but it would look very cool and unique. You did not mention the floor so maybe you like it the way it is:)

The floor has not been painted. It is Old Chicago brick

Are you happy with the multi-colored existing brick? I love the look of real brick, but if it were mine, I would wish for fewer colors. :)

If you like it, though, then great! I would look to the colors in the brick for color inspiration in the rest of the room. My whole living room and kitchen is a peachy-coral shade, which is not my personal favorite but would look great in your space with your floor! It would look fab with white cabinets.

Great for the brick. And the pattern chairs are cool too. I almost wish for a cute solid rug under part of that.

Maybe new drywall, etc.. instead of painted board. If you like lively paint choices, a muted blue from chairs? Or just renew by adding drywall / eliminating a bit of its busyness.

So, blue behind the stools, and blue stools. I'm trying to reduce busy contrasts.

I'd try that first. I don't mind what you have - but counters are dark, true.

A quick "almost" color:

From a quick look at the Internet, Old Chicago brick can refer to actual reclaimed Chicago brick with certain color tones, or new flooring that mimics this coloring.

Or this. Play up the brick with old bronzes and/ or your chair colors carefully.

I like what you have, maybe just use a rug to tone down the floor a little. The stools aren't as awesome as everything else.

You have a wonderfully unique kitchen. I agree that it is a bit awkward but I can see it as functional. To me it looks like a 1970 remodel.

A lighter backsplash would be great here. The current one is sucking the life out of the sink area. The current plate rail looks apropos if you are keeping the early feel to the room. The scallop could use a re-work. Building up with trim and adding a curve over the sink would be great. I would also consider replicating the drop down shelves on the left for the right side bar area.

Cushions on the stools in that wonderful blue on the chairs would play nicely...or perhaps painting them that color.

As far as the countertops I would suggest a (mostly) solid color that matches the beige in the floor. Such as a Sahara or Cotton Beige

Is it possible to take a closer image of the sink area?

The layout where you have to jog around 2 peninsulas would drive me nuts. I'm with jhmarie, I would investigate removing the one that's just seating, replaced by an industrial or farmhouse table with great chairs like your 2 upholstered ones.