Since the bricks and beams are fake (a try for Tuscan, maybe?) I would eliminate those. Having lived in the 1970s, I don't remember this sort of thing, so it may have been done later. Once the "faux" finishes are gone, you may find it is easy enough to straighten the sides of the arch up to the ceiling. That would seem more modern to me.

The arch would look good if you get rid of the fake brick and plaster the wall with a smooth plaster finish.......Install some small LED lights in the arch and you have a bright, cheerful space.

Removing the arch wall would help gain some storage and counter spaces.

I agree Nava this is a bunch of fake stuff trying to be something that is not good in such a small space. I would rip all of that out and get a counter depth fridge and build it and pantries into that space where the arch is it would make your kitchen feel huge and would give you tons of storage.

If you get rid of the beams (and I think you should) what are you going to do with the popcorn ceiling? I have never seen a ceiling with such large popcorn on it. It looks like someone hung white shag carpet upside down. Is it like that throughout the house? I have a hard time thinking someone could match that texture. You might need to adjust your budget to address the ceilings.

Remove it and put a pantry in one end and upper cabinets across the width. You'll end up with a ton of storage and be able to get everything off of your counters. Or move the fridge over there and put a counter and full size uppers where the fridge is now.

Thanks for all your comments, Everyone!
I also agree that the fake stuff just has to go! the arch feature is unique but also unusual and unusable! For a small kitchen. So I took into consideration your comments and came up with some idea that might work well for us:
Rid all the Fakery stuff. The ceiling is just some droopy plasterwork so easily scrapped off. 'Bricks' are glued to the plaster wall so easy enough to pry off.
Expand the arch area and place a pantry on one side and cabinets thruout for more storage! I thought of moving the fridge into this area but it just works better where it is right now.
Extend the counter space, as well as more cabinetry,
into the front window so we have additional counters to put stuff in. Use a smaller single sink in front of the side window to gain some counter space.
I think these changes should work well within a small budget since it's not too much of a gut job so no major structural or plumbing work.
What do you think? Better?
N

I like the new look and all the counter space you're gaining. I would probably also put the microwave above the range and it will also add to your counter space.

I would take down all the bricks and the arch and go with a more modern look.

Definitely remove arch. And cottage cheese ceiling. Bricks would be OK painted white, b/c removing them will be a big job, usually requiring some re-drywalling. And sometimes they contain asbestos, same with ceiling. Have it checked out before you start.

A great improvement would be to build a wall about 3' out into the room next to the stove. This would hide the side of the stove and give the kitchen its own space. I can't tell from the room photos, but you may want to do it on both sides. You could even build in book cases on the DR side of the walls. This kitchen is nothing but potential!

I love what you are thinking of, send pics when you are done.

Lose the beams and brick. Is that popcorn ceiling? If so remove. New window covers try white pleated shades at Lowes. I would paint cabinets a lighter color. Make sure it's paint that can be used for cabinets. Change pulls to brush nickel. New ceramic tile floors would update this look.

New updated lighting. Ikea sells some inexpensive track light in stainless. Please remove all items from refrig. Nothing destroys a look like clutter.

Then paint a soft color. You could add a island on wheels. Looks like you need extra counter space?

Also don't see arch?

remove fakes, do what ever gains the most cabinets, end up without all that visible clutter.

Here's the 'Arch'.

☺️ yes I'm planning more Counterspace and Cabinets so hope to get rid of Clutter! Don't really like to have Microwave above Stove so perhaps beside Stove or beside Fridge.
I think White cabinets will work. Still deciding on color scheme for floor and countertops.
Thanks for your comments n suggestions, Folks! :-)

N

I would remove everything and update. Sometimes the old and new don't mix, esp. Fake brick. I think you can have an arch with real brick.