I think the cabinets look great as is. I would not make the island one level. I would rearrange your living area by floating the sofa so it does not directly face the kitchen. You might put the tv on the wall where the sofa is now and float the sofa with its back to the kitchen. You could put a sofa table behind the sofa. W pretty rug would ground the grouping and you could add a couple of chairs. Your home is lovely.

Flip the sofa to face the fireplace and put a sofa table behind the sofa. Move the corner TV cabinet to the left corner when facing the fireplace. Move the chairs side by side to the right side so you create an 'L' with the sofa and chairs (or play with it, until you like the layout). Could add 2 lamps or vases or whatever you love to the sofa table. Also, need an area rug to anchor the living room space. Don't go too small...bigger is a better when it comes to rugs when you are dealing with a large room. After that is done, I'd address the space above the fireplace (could possibly put the TV there or a nice mirror and layer the decor on the mantel, or a single large framed print you love) and then re-evaluate how you feel about the kitchen. Right now, I would not paint the cabinets. If I did anything, I'd replace the countertops but only because they are darkening the kitchen to me. A light quartzite or quartz would be my choice with a beautiful backsplash. What you have is NOT bad, it is beautiful, just a bit dark. Another idea would be to add pendants above the island. I think likely 2 statement pendants versus 3 smaller ones. All just suggestions, take or leave whatever you like. :)

I’d leave the cabinets stained and put a white or light counter.