Could you do a corner sink since the corners do not provide you the same space as the straight run of cabinets do. Also provide some more pictures beyond the fridge.

There's a small counter just behind that fridge...the existing kitchen as seen here wraps around from the kitchen just up to the stove. We added a temporary countertop for the dishwasher to the right of it

Sorry from the fridge*

Take the stuff off the side of the refrigerator looking down into the kitchen this is what draws the eye immediately. You could put white shelves above the counter to the right of stove for more storage, remove the window treatment from the window - can you add shelves with baskets where you currently have the trash?- Also what is beyond the fridge and then the kitchen looking down toward the table just to get a feel of what you have to work with.

Are you planning on remodeling or just trying to work with the existing space?

@scott - we cannot go to the left of that half wall as it is a back split and it is a good 3 ft above the family room. On the other side (the wall where the stove is) ...on the other side of that is the garage.

A bit of both Amy...replacing the existing cabinets and putting in more as well as rearranging the fridge but I cannot knock walls down without major reconstructive work

Can you draw out a diagram? Give dimensions? What do all the walls back up to? What is your budget here? Is opening up walls a possibility?

I do think for a really tight budget that moving the frig to the wall opposite the table would open up your space more. Definitely look into a microwave/fan combo for over the stove. That will help.

I would paint your whole kitchen white. Replace the curtains with a woven wood shade. Take everything off the top of the cabinets. Take everything off the frig, Sort of clean out everything. It is amazing how much stuff we collect and don't really need.

One of the best things I did for myself kitchen wise was to sort thru everything I had and give away things, appliances, dishes that I rarely used.

Two more pics..

If you are replacing then you can build a cabinet to slide the refrigerator into- the dishwasher should be near your sink loading dirty dishes must be a bitch right now if you have to walk clear across the room with them? What space are you dealing with length and width? I agree with a micro/hood that frees up counter space for you. Also get cabinets that go to ceiling that will add additional storage too.

Is there a hole in your wall where the table is, and do you have a dining room?

Try taking down the curtains, every off the table, frig, top of cabinets and post some pictures. I think you will be surprised!

What is the black area near the table? Do you need a table and chairs in the kitchen?

If you haven't already when searching houzz kitchens search for "u shaped galley" - you will get ideas for layout. I also have a galley some suggestions would be counter depth fridge and use drawers instead of bottom cabinets for more space.

http://houzz.com/photos/692663

Just a few thoughts - this is what i would do, if this was my space- :)
1) counter depth fridge in color close to cabinetry
2) scale down dining set or consider installing countertop at table height
3) remove upper cabinets on left wall and reinstall them on the opposing wall (visually opens up the space/not closing in on both sides.
4) keep countertops clutter free
5) pick a paint color in earthy tone (in lighter hues, but darker than the cabinets) for the walls
6) install rope lighting on top of the cabinets - place on dimmer
7) remove items from fridge surfaces (they draw the eye to the narrow space - if you move cabinets, consider a creative message board on the freed up wall, for photos and such instead)
8) add a backsplash with earthy tones and some reflective or metallic surface mixed with natural stones.
Whatever you decide, interested to see you "after" pics. Luck.