Issues GALORE, issues that have never seem to have been houzzed before!
So barring new appliances, this space will be gutted, and with a smile.When my husband and I bought this new home we were going to execute some low cost and novel DIY ideas - but we find its utter ugliness inspires us to work harder for the kitchen we actually want! Sometimes you just shouldn't slap lipstick on that pig!
I have issues, and I have ideas, and so I spin unless you can help!

Issue: I would love more counterspace on either side of the stove. Even with the peninsula I find there's not enough space to lay things out.
Ideas: Keep refrigerator in place, and only gain a few inches with new cabinets; add pull out cutting boards to have more surface area; Move refrigerator to dishwasher, and dishwasher to right of sink, but have to lose peninsula; Move refrigerator to right of sink, but have to lose peninsula.

Issue: Peninsula chops room in half, and storage underneath awkward, though doable. If I remove, I lose counterspace I need.
Ideas: Extend counterspace and put stools, risking crowding the windowseat/ banquette space; take out and just do flush galley cabinetry, but lose counterspace. .

Issue:The cabinet depth is ridiculously narrow and short. I know it can be solved by new cab depth, just thought I'd mention. I'm confused as to layout, where I can have drawers, where I can have shelves, etc.
Ideas: Worry about it later :)

Issue: The window. Ugh, this window. Ginormous. Takes up wall space, existing wallspace around window too narrow for cabinets. Needs to be replaced badly, so confused what to do for new size. Potential for banquette or window seat is why I fell for this kitchen.
Idea: Replace. Keep existing size or make smaller and use millwork outside to mask difference, if possible. Banquette to wrap to empty wall space in an offset L, or window seat and 2 chairs. Would they get in the way of stools ?

Issue: The door to the sun room (that we don't use) uses needed wall space. Though it adds lights, I'm okay with it going . Thinking of building out a walk in pantry, door to open into pantry, taking some room from sun room. Window seat would extend too far if it went from wall to wall
Idea: Pantry, or minimize window to outfit wall with cabinets.

Issue: flooring
Ideas: Install hardwood and match to rest of house (we are going to stain darker) or Tile. The entry floor in foyer to be replaced. Should I match those floors ?

I thought about closing the entry to the dining room since there is an entry from the living room, but I use it too much.Any furnishings we have are from a previous apartment so they are not necessarily staying, though if it helps visualize, we would identify as traditional/transitional. Planning on wainscoting, molding, and would either go dark cabinets, or white. Likely we'd be doing all work ourselves. Please advise on any and all you can! And yes,that is a fish holding my kitchen tools - if he goes I go!