A chandelier would actually be a great fit for this kitchen. It sounds like you have an interesting idea for hanging it, too.
EDIT: In this instance, a mini chandelier or chandelette is what you should look for here. They are often just as adorned with crystal and just as elegant as their larger counterparts, but smaller and better-suited for ideas like yours!

Other lighting applications--How about island lighting? Or switching out overhead ambient lighting (if present; I can't really tell from these pictures)?
Our 6 tips for kitchen lighting might be of some help here, too. http://bit.ly/1bQeGY0
Here's to an awesome kitchen!

Small enough and hung higher I don't think would be a problem.

Yes hand a small chandelier ,yes yes

I would prefer to see pendant lights hung above the bar area.

Wendi, do you think pendant lighting would interfere with the view of our black and crystal looking chandelier by the bay window? thanks! Oh, and I don't like the Celtic cross above the window (but my husband loves it) so it has to stay :-(

here is the other view

Oh dear! To be honest, I don't think awesome is going to happen to this kitchen. Given how nice the dining area is, I think the kitchen needs a better design and better cabinets. Sorry.

I don't think a crystal chandelier above the sink will complement the dining chandelier. I'd like to suggest some awesome bar stools. The ones you have are a bit too modern for the cabinets and your dining table. These white leather/nail head detail will complement your cabinets and hardware, and the wood legs will speak to your dining table. It's a lovely home you have! Can you show an up close photo of your dining chandelier?

Yes it definitely does need better cabinets, but we are planning to sell in two more years and new cabinets are not in our budget so we need to make *some* kind of awesome happen with what we've already got here.

You could do a mini chandalier. I would also strongly suggest under cabinet lighting. They look & work best with new cabinetry, installed with the cabinets & with a light valance along the bottom of the cabinet, but for your current application I think they'll work fine for you. Also, installing pot lights aren't too expensive...just don't overdo the quantity. Are you up to replacing the cabinet doors??? If not, update the hardware. Your style IS a bit confused...traditional architecture & furniture...modern barstools & rug. I think that if you chose a sleeker looking cabinet door profile you could get away with some modern touches more, but the chandaliers make it difficult to meld. I think you need to decide how you want the area to feel...more formal & feminine or more architectural & streamlined.

If you're planning on selling, I would definitely update the cabinet door profile...no arches.

In that case, do not do any recessed lighting in the ceiling at this time. The correct placement of them will change with a new cabinet layout if the new owners choose to do so.
Some sort of light will be nice over the sink. Don't stop looking until you find the right one. They make flush mount fixtures that have crystals on them.
While you are at it, have the electrician put an outlet above both sets of cabinets and wired to a switch. Then you can place rope lighting on top of the cabinets for more bling. The same outlets can be used to put ropelight or pucks underneath the cabinets at any time.

Heather, I apologize if I was too negative. The cabinets are not your fault. There is always something awesome to can do to make the space feel more inviting. I wouldn't bother doing anything to the cabinets but lighting is a great way to add a new dimension to a space. Perhaps a row of strip lights on top of the cabinets to brighten up the ceiling and walls and then a nice chandelier in the center and some under cabinet lighting. I think a single crystal at the window is plenty. save the bling for a bigger space.

I love what you've done with the kitchen. I would recommend something a little more contemporary if you want lighting over the sink

Design Details, it was nice of you to apologize.... You needed to!!

Heather, I don't think pendants would interfere with the existing chandelier at all. Just be sure to select ones that are small in scale.

Here is rope lighting over the cabinets.

I agree that two pendants over the bar would be a nice touch. Something simple. Perhaps either a glass fixture or something similar to what Keitha suggested?

I think someone else had the same comment, but I think a couple of pendent lights above the bar area with some great color, maybe red (depends on the colors in the rest if the house) to bring some interest and color to the space. I don't think the chandelier on front of the window will work since you have the crown molding connecting the cabinets and you will not be able to see it very well. To add more lights , you can add some LED strips on top of the cabinets. Also try to think about another colors for the wells? Something light but with color to make the white of the cabinets standout and not blend in.

Pendant lights over the bar(2) and make sure all of your lighting matches. Recessed lighting for the other area of the kitchen. Don't want too many lights hanging from the ceiling it would be too much for a small kitchen.

Your kitchen is great and ready to be illuminated! Depending on a modern or more traditional look, Here are some lighting ideas out of a million others we have for you to start your search - Enjoy!

Product links:

French Flea Market inspired chandelier: http://www.atgstores.com/chandeliers/minka-lavery-1295-5-light-accents-provence-chandelier_g962265.html

Large Pendant for over the Island: http://www.atgstores.com/large-pendants/arteriors-home-42414-mason-wide-hammered-large-pendant_6660513.html

Modern Chandelier: http://www.atgstores.com/chandeliers/kichler-lighting-43186aub-grand-bank-5-light-linear-chandelier_g1488725.html


Under cabinet puck lilghts: http://www.atgstores.com/under-cabinet-lights/nora-lighting-nm-240-mini-xenon-grooved-trim-under-cabinet-light_g782679.html

A crystal chandelier and refrigerator post-its do not work together. Your kitchen is so lovely, don't ruin the look with stuff on the fridge doors.

Resist the urge to "decorate" the tops of the cabinets. Some rope lighting hidden from view on the tops of the cabs would be nice. Sorry Fred, just saw your post.

Have you thought about painting the gray walls a grey with a hint of blue in it? Something that matches your already blue wall? It would help the cabinets stand out more. Or maybe a darker grey?

I like the neutral look, especially if you are planning to sell in a couple of years. I too, have a problem finding light fixtures because we have a spectacular view of our woods and the outdoors which I don't want to block or compete with. I know that chandeliers are popular now--but they will hang down and block and compete with your view. I think if you do a simple pendant over your sink and some under counter lighting, that might help. And, I agree with not putting anything on top of your cabinets--except for some rope lighting to reflect off of your ceiling. Try some pops of color that YOU like that complement the gray. Even a bowl of fresh fruit that gets eaten and replaced--not simply for decoration! And, if you have pottery or bowls that you use that are colorful than use them. Or, plates that mean something to you that you can prop against the backsplash to add interest but don't clutter your countertops. You have a kid--so refrigerator art is a given! Perhaps you could select a few pieces to display at a time--and use wipe-off refrigerator calendar for reminders. Also, you already have a nice shelf for display. Instead of decorating with clear glasses perhaps you could use more colorful pieces you already own to display. Good luck!

I think if you could take another picture of up underneath the sink valance and post it, people will see the recess better that the valance makes. How tall is that recess? 3"? A nice flush mount with crystals would sit up inside and not hang down too far. It will still give nice interest from across the room, and then get more brilliant as you get closer. I don't think it will intrude on the window much more than the valance already does. At least the type of light in my mind :)

pendant lights for sure over the bar area

How high off the floor is the top of the kitchen window? Looks like about 7'-4" from here.
After you leave room to open the cabinet door on the peninsula, there would only be enough room left for one lonely pendant, or they would be extremely off center.