Are there utilities in the soffit and does the hutch need to stay?

The sink should stay under the window. Try to shift the dishwasher or stove so that you can have both doors open without completely blocking the aisle. If the hutch can go, move the refrigerator into that space close to the left and build in a storage wall with closed cupboards and open shelves to display your dishes, etc. Now you have room for more counter space next to the sink. A banquet and small table would go nicely in the corner. If you can remove the soffits you can have taller cabinets.

How about floating vinyl plank tiles that look like wood. You could paint the cabinets white or a pale color of your choice. I'd leave the counters if they're in good condition. Also adding pulls to the drawers and cabinets would give it more of a cottage character. I've seen amazing backsplashes using paintable wallpaper that looks like beadboard. Maybe cut out the middle of the large upper cabinet door over the dishwasher and insert a piece of glass. I love the chandelier! The hutch has good form but not color. Can you paint it? Either the cabinet color that you choose or if you paint your cabinets white, I'd pick a soft green, blue, or grey for the hutch and paint the beadboard backing white to match the backsplash. You could also easily put the beadboard wallpaper on the soffit and trim it out with molding. It's very cost effective and easy to do as is the vinyl floating floor. I would find space for your cookbooks either on your hutch or in a upper cabinet with the door removed or a glass door.

I like the beadboard wallpaper idea! Thanks

Cute Cabinet too large for space. Find a cute small scale settee or something like that with quaint chairs. See Candice Olsen HGTV