I think the backsplash is fine actually, just remove the ones with the design on them. There is a cool thing called grout paint that I've used before to change the look of a back splash without spending a lot, or having to rip it all off. It comes in a little marker. Maybe think about adding some cute handles to the cabinets though. Definetly remove the wall paper above them. For lighting, track lights? A cute chandelier? In our kitchen we hang dry flowers all around for a cute rustic look.

never heard of grout paint--will have to look into this, thanks! I was debating the handles--I could add my own touch that way

Definitely can add character to those nice cabs with hardware....thinking black for rustic look. Maybe pendants over counter by window. Remove old large ceiling fixture(dated) can lights instead. Definitely remove decal tiles and border wallpaper. Change appliances as needed. Floors look beautiful.