Redo the floor first before you decide.

What color are the other walls in the home? What color is the kitchen backsplash?

I would not paint it a dark color, But IF that is a window, I would replace the blind for a Top down/bottom up blind, so you can still have privacy, but let in more light

Blinds.com has a great variety of colors and styles.

I cannot see if the kitchen is open to the adjoining room but if not I would paint the wood ceiling and walls a warm white, install a 12 x 24 charcoal ceramic floor, if not already black replace all hardware with black knobs & pulls, install a natural fibre roman shade on the window and replace the light above with a track light on the wall.

I would not add a wood blind for sure but do you really need that privacy at all if not forget the blind . What is the new flooring ? I think you cannot go over the tile with the new floor so that means you have to remove that tile floor and if it is not under the cabinets then pretty easy but if under them that will be a job for sure. The reason you cannot go on top is it affets the appliance position since the new floor will need to under the appliances .

Sometimes we can try to get a look that just isn't in the cards without spending a small fortune.

Instead of going for sophisticated, in a cabin with older wood cabinets and a wood ceiling I would probably go for a warm and welcoming vibe.

What flooring do you have in the other parts of the home? Can you continue the same flooring into the kitchen? Having a continuous floor is one way to make the home feel less choppy and more spacious. If you can't match the other flooring in the home I would go with a matte finish and something that looks like stone.

The white looks so stark and because there isn't great light, it just feels a bit dull and lifeless.

I think a sage green would be very pretty with your cabinets, but I don't know what other colors you have in your home. I like to repeat the same colors in different ways in different rooms to create a feeling of harmony. The color will also need to work with the flooring.

I agree with others that the window covering is pretty severe. I often use a privacy film if I don't have a great view or need some privacy but don't want to block the light. The only window coverings I have other than window film is in the bedrooms. In small spaces simple is often the best answer.

Appreciate all the great suggestions! A natural rattan shade would be great. Our only reason for covering the window is to keep the dogs from barking at any movement they see. The rest of the open plan living/dining area is wall-to-wall carpeting on a concrete slab. Hoping to replace kitchen floor with well-padded sheet vinyl. I am partial to a stone look, as suggested.

I'd get flooring that has as little pattern as possible. The larger the expanse, the fewer lines and seams, the larger and less chopped up the space will look.

I've been there with dogs barking at squirrel TV. I'd get an inside mount cellular shade blind. It will be less fussy looking.

My first hunch is to paint the ceiling, but you are in a rustic sky home and I presume the rest of this level has a wood ceiling yes? Painting it would open up the feel of the space a lot.

I have had good luck with my dogs using privacy film, still lets light in, but they don't see every dog being walked down the street.

A TON of incongruencies in your space. You have a heavy tile floor and you got water damage???? That did not mess up the cabinetry??? A light fixture over a 100% covered window ? Natural light will pour into the room at greater depth than that fixture casts.

The way to keep your space as airy as possible would be to choose paint as light as possible, doesn't have to be white. remove the curtain and light fixture. Film is a great solution. We haven't seen the glass but perhaps you would only have to cover the bottom half? I get you have wood ceilings but still there has to be a way to light the space from the ceiling. Whoever put in the beautiful ceiling did you no favors staining it soooo dark. It is your major issue sucking up all the light. Yes to the floor being as light as possible with as little pattern as possible. A speckled linoleum possibly. I have never been a fan of SS appliances and yours are casting DARK. White/almond would also help lighten the space.