I really like where this is going so far. I would actually keep the cabinet over the sink now, but to help create a focal point, I would use glass doors. I think that will add a little lightness to the space. People can be afraid of glass, because they want whatever they put in that cabinet to look nice, but you could go with a textured or even a simple design on the glass and you won't see the contents. Also see if they can place an under cabinet light over the sink, it'll be a little dark over there and you'll miss the task light if you don't have it. If you want a seamless look you can go with engineered wood, but just make sure when it's installed the boards are tight, you don't want to have a gap and then have a diswasher overflow or spill and have the liquid get between the boards. I'm in favor of your decision for tile, just make sure to put tile under the appliances and cabinetry, that way if you ever decide to change out cabinetry in the future, you don't have to worry about replacing or fixing the floor. Depending on what kind of tile you settle on, natural stone or porcelain ceramic it could affect the flooring support. Natural stone is heavy and they have to re-inforce the fooring to handle the weight, this can sometimes raise the level of the flooring, be careful about that cabinet over the fridge, just go a little shorter, if the floor is raised that could affect the fridge fit in that section. For color on the floor, you can go with a light color, grey or even beige something similar to a travertine, that will contrast with the dark cabinet and look sharp. What are you doing for the counter-top? If possible I would have a little overhang to that peninsula and that way, there's some leg room if you place seating on the other side. If you're doing a solid surface and going with very little colors in the counter, you can bring in a little color with the backsplash and even some personality and color with the pendant lighting. Looking good so far!

I start my garden seeds under a 2'x4' 8 tube standard type fixture, and my seeded peppers start to bloom before they get set out. I would think you could grow the smaller sized plants in 6" pots without too much extra consideration beyond normal watering and feeding, just so you could raise your lights high enough and pick the shorter varieties. The only problem I have with peppers under lights is germination which I overcome with bottom heat and then I get good results. I pull out the heat mat once the seedlings start to show their first true leaves. When you are away turn down your daylength to more like 10 hours, and just sort of a curtain of plastic sheeting around the plants may actually not even be needed, if you have a damp basement. Best is to leave your timer set and have a trusted friend check your plants a couple or three times while you are gone and water if needed.

Look at the close-to-ceiling fixtures on http://www.lightingdirect.com or your other favorite sites. Replace the melon fixture over the sink with a brighter one, replace the fan, too. Perhaps you can reuse the fan in another room. A quick way to start decluttering is to remove everything on counters, cabinet tops and the walls to table in another room. Then put back what you actually use in the kitchen over the course of a week or two. You might consider using your decorative accents in small groups that you change with the seasons two or three times a year. This would also be a good time to remove everything from the cabinets and drawers to see if you are using what is there or if it can be donated or sold.

Yes a custom cabinet would be best but I am not spending that much $ right now. Budget was in my OP. I am currently in the process of having an island built, and there will be much more storage there. So will probably wait to get something until after the island is done as I know I will move some things around. Still, I really think a big cabinet would be just too much...too closed in and make the area seem smaller. That's another reason I like the bakers rack type of storage.