Oh man, I love knotty pine. But I think you will discover that I am a minority on that one.

Just wanted to mention that :)

Either keep the walls and paint the cabinets, or paint the walls and keep the cabinets. If you have a lot of pine walls, painting those instead will really lighten the space. You could also remove the paneling and use drywall instead.

I think it depends on the look you are trying to achieve. I know white-washing is kind of an 80's thing, but I've seen it done will in a country/cottage look with greige/off white cabinets. Here is some inspiration. http://www.sarahrichardsondesign.com/portfolio/sarahs-cottage/kitchen