What a gorgeous area, I would give it a conservatory feel. Leave the tiles to define the area. I note she has a rattan tub chair ?? I would move that to that corner, find it a mate, move other cane and rattan accessories to there, add a small round table and some lush plants. The tub chair looks like it would double as a lounge chair as well as a dining chair for breakfast or casual lunches. Sorry I can't find photos, everything is for much larger areas.

I would suggest you take out the cabinet that is to the right of the stove and use it elsewhere in the house -- perhaps in the bathroom or dining room with a hutch above it. Then, I would suggest you have someone install a lazy susan cabinet in the corner between the sink counter and the stove, meaning you would move the stove down a bit and have a small cabinet/counter top to the right of the stove. I would suggest you have the cabinets refinished in white and then paint the walls a pastel you like. If you would prefer white walls, then add white-painted crown molding and paint the ceiling a light neutral blue, such as Sherwin Williams Niagara Falls Blue. Then, I would suggest you choose a favorite accent color and use this sparingly in accessories like towels, pot holders, small vases or floral arrangements, and a valence above the triple windows. For a genuine 1940s look, you might have white ceramic square tiles with a rectangular red border installed as a back splash behind and above the stove. If you are replacing counter tops, I would suggest a light color such as white with a beige or light grey vein or striation for some sort of pattern. You might be able to find the same color and design in floor tile OR opt for a wood floor as another poster suggested.

I am planning to add scatter cushions and think if I do a pair of larger ones for each end so they go over the arms to creat height at each end, and a couple of smaller ones, I want to bring some colour in too. I do like the idea of a larger side light at either end to, Switching the sofas is going to be my final fix if all else fails!!

Love your style and you've got some beautiful furniture there! A deep aubergine purple velvet on your wingbacks would look stunning. I'd tend to stick to purples in this area to keep it classy. Also, a dark purple would be more practical with kids than a cream. I'd keep the chairs you've got, unless they are really wobbly. Get someone to check them out and give you a quote for repairs and then you'll have a price to work against to see if you can get cheaper. OnePlan is right on the style and yet I don't think they look out of place in the room. I also like the idea of bench seats or if you wanted something really different, you could get a church pew?! I don't think the room has too much dark furniture as it is a large light area. Keep us posted with pics/samples of possible fabrics you find. Also, check out fabric outlet places.