Will you have seating on the peninsula?

You omitted saying how much you want to spend. My inclination would be to demolish all and replace with new, including the floors. The cabinets should go to the ceiling. That is, if you have the budget for a kitchen renovation.

Are you certain there is a gas line to the kitchen? If not, then go with an induction range.

It doesn’t look from the photo like there is an exhaust duct to the outside. Will you be installing one? This could be a difficult job or an easy one depending on your set up.

the standard advice, with good reason is to move in and use space before anything is done. 6 MONTHS. You will have surprises. You have quite the opportunity with a large area. I would not start doing small projects because a bigger overhaul might be worth it within a couple years. You can have a fabulous kitchen in an open area . Don't underestimate what you can end up with and make the mistake of replacing things bit by bit. Not the right approach here, in my opinion.

I have similar cabinets and am happy with having refreshed with new counters, backsplash and apron front sink - but I would only consider that if the cabinets are in good shape and the layout works. The only problem I see with the layout is the dishwasher location. See how that works for you before you do anything like countertops. My mother has a similar dishwasher layout and it seems to work fine, but you do seem to have room possibly to the left of the sink for a dishwasher which might work better.

You could run the wood floor into the kitchen or consider a new tile if it is in the budget. If you keep the wood cabinets and don't paint, a white or cream (depending on the tone of the cabinets) backsplash would be pretty.

Since you came from an older home - my kitchen is done with a nod towards a vintage style:

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

Thanks so much for the input. Our budget is $9000 for labor and materials, doesn't include new appliances. The cost for granite countertops is also exclusive of that budget. I love the apron-front sink. friedajune, There's a gas line to the kitchen, but don't know if there's an exhaust duct to the outside. mama goose_gw zn6OH, I want to have seating, but not sure how to make it work. friedajune and cpartist, I said gas stove, because we make a lot of Indian and Mexican breads that we throw on the fire for flavor and softness, but I just saw a video of someone making very puffy:) Indian breads on an induction stove so I think its a great idea. I just spoke with our plumber and he said he can move the dishwasher to the left of the sink. I'll consult with our handy guy about replacing cabinets. herbflavor, the reason we're doing it this summer is because those are the only dates our guy and his work crew are available.

I used the Kohler Whitehaven "short apron" style which can be installed on a standard sink base cabinet. They are currently backordered for a couple of months. One person here was told about 45 days till they are back in stock. If possible, see a "short apron" style in person - maybe at a plumb supply shop to be sure you are ok with the look. It is just as deep inside as a "tall apron". I actually have come to prefer the short apron in some ways because it allows for the taller cabinet doors. The stainless steel Kohler Vault also comes in a "short apron" style.

Any recommendations for tiles? Hubby wants to keep these, because he says there are perfect for spills, but I think they are dated.