If you get plenty of light I would find an expert to stain the cabinets a darker color (don't think DIY would be good, in this case). New counters, maybe new lighting. This is only if the cabinets are actually in great shape and fit your needs (I had a very similar kitchen and loved working in it).

We did this in the bathroom vanity area, cutting out the center and dropping it, as well as lifting the cabinet off the floor to make it feel roomier. Replaced the formica with quartz. The stain is a coffee color and we did it in the basement while the tile was being installed on the floor.

I would get some nice IKEA cabinets in there. I bet it would be cheaper than playing around the edges of a remodel.

I dont mind the cabinets, and if you could restain like the bathroom ones, they would look much nicer. I like what you did to the bathroom ones. What I really dont like is the knobs to your cooktop either in place of a drawer (fake?) or mounted on the drawer panel. You can buy cooktops where the knobs are up on the cooktop where they belong. What you have isnt a safe place for them. If you have children, or someone bumps them on the front like that would worry me to death. Ihave a very similar cooktop but, I have the knobs on the top of it. The paneling can all be primed and painted what ever color you would like.