It is not usually the best to put a backsplash on top of a small splash that is connected to a countertop. It looks like your countertop and small splash are one piece, but if I am mistaken see if the small splash can be removed. If you have plans to change countertops, wait with the backsplash because backsplash comes last. I do not see a need to change countertops, just want you to know the right order in case you are thinking of going down that road. If you change out counters later, there may be a gap between the new counters and the backsplash or the backsplash may get damaged in the process.

Oak cabinets look best with a simple splash. I used a cream subway tile:

https://www.houzz.com/photos/my-pics-work-in-progress-phvw-vp~110720042

I have also seen beadboard used - both the real thing and the paintable, textured bead board wallpaper - both are a little less permanent than tile.

I like your wall color, but if you want a change, you could lighten it and go a little more cream or look at the sage greens or green grays.

Many will suggest stainless appliances. I prefer white and think white helps keep my kitchen light.

I used a kit to add a plate rail to a cabinet - just an idea for your open shelf - but that might not be your style.

https://www.houzz.com/photos/my-pics-work-in-progress-phvw-vp~109854029

I went with a more vintage style - I like it and it worked well with my cabinets, however many go a different route. I do have a "wood kitchens" idea book as well as a wood kitchens Pinterest page and both include some refreshed wood kitchens.

I would start with new lighting you love. Then, select the backsplash. But, since you have a 4" backsplash already, I vote new lighting and paint only. Then, selective accesories in a color you love. PS...I would also suggest reupholstering the bar stools in a fun pattern before selecting the paint color. It would be very easy to reupholster the cushions in a fabric you like.

It doesn't have to be this color, but a color you love and is complementary to the nearby spaces. Then, a complementary chandelier, paint and bar stool upholstery.

I would remove the items from the top of the cabinets and maybe install some above-cabinet lighting.

The first thing I would recommend is to remove all the clutter from the tops of your cabinets. Then, I would suggest white walls, a white backsplash of some sort and, if possible, lighter counters. I think these changes would not only lighten/brighten your kitchen and tie in your appliances better, but give you a more updated look. I thought the above cabinet lighting was a nice idea, as well as reupholstering your bar stools. If you did reupholster, then I would suggest using a matching/coordinating fabric for a new Roman shade. Taking a colour from the upholstery fabric, I would then add a few accents in the same colour, such as a rug runner, dish towels, or canisters, etc. I think a green or blue hue would work really well with your cabinets and flooring.

Is it possible to add a larger, longer island?

Thank you for your suggestions.

Unfortunately we will not be replacingthe appliances any time soon or the countertop. I have to work with what I have. And the 4" lip on back of countertop cannot be removed.

That being said should I still paint lighter colors? And what about back splash then?

I love the idea of re upholstering the island chairs and a new curtain. Our kitchen table is in the kitchen as well and the chairs are the same as the island.. would I do them as Well?

Also I don't think we can afford to change the lighting, and if I do I'll have to change the door knobs.

Also the island cannot be made larger.

Thanks for the suggestions.

It looks like all that needs to be done is to update the lighting. Otherwise, you currently have a backsplash, undercabinet lighting, and the paint color seems to go well with your current countertop.

Totally agree with Michelle Yorke Design. Imagine pretty (non-generic) lighting with come color. Yes, reupholster the dining chairs as well. New hardware is not cheap! I think you can get some new lighting nearly as much cost as hardware. I vote lighting instead of new hardware.

Check out this lighting in the room view thumbnail. Pendants for the island and a drum shade for over the table. Lighting alone can really "perk up the style" in a space. For the stool and chairs upholstery, I think this fabric (or a fabric design you love) would look great. It colors will complement the wood, floor and lighting,

Lighting Big Box

Personally, too much brown. Needs some white, maybe subway tile backsplash? Also adding some brass hardware to the mix or brushed nickel looks great too.

New lighting, Bar stools and hardware for starters. Too much oak wood so breaking it up with color, texture and materials.