The floor and cabinets almost look like the same color. I would lighten the cabinet color - making sure it doesn't clash with the floor color. I would also modernize the open cabinet above the microwave by removing the moulding, or adding a door. I'd find an inexpensive countertop that pops against the wood (or painted) wood cabinets. Change out the cabinet glass to clear, and do a new backsplash that brings it all together. And, finally add a cool light fixture, and maybe a kitchen rug.

Beautiful clean modern kitchen! You have a great opportunity to put your personal stamp on the space with a unique backsplash. As you've heard already there are some different approaches. I'd probably place the backsplash up to the wall cabinets and up to the base of the hood. Then continue the backsplash at the same height (18"?) behind the sink. Then place an inspiring colorful picture above the sink to break up the wall. Here's a picture with pendants that aren't too obtrusive. Having multiple levels of lighting at different lumens makes a more inviting feel to the space. I couldn't decipher your flooring, but you may also want to consider adding some nature elements like a type of wood flooring, wood stools, etc. Good luck! If you need software to plan out materials check out our Home Designer software: http://www.homedesignersoftware.com/

I would consider something light with some other colors to mix in like this. http://t.homedepot.com/p/Silestone-2-in-Quartz-Countertop-Sample-in-Mont-Blanc-SS-Q0220/203674451/ I like the wood paneling and would paint it a white with a warm feel to it. A white will reflect a lot of light from your large window. I wouldn't paint the window casing as it might tie in better with the rest of the house. Good luck!!

congrats! first, sand prime and paint out those cabinets....i'd go with a grayish shade of white or pale gray that will work with the flooring. i'd also carefuly chip off the yellow tiles. since on a budget, consider applying some beadboard as your backsplash, painted in a glossy, oil based or marine paint in a crisp white to keep it scrubbable, then, dress up the edges with some small mouldings, painted in the same white paint. this is going to be SO MUCH less costly than tile! and it will look great with the butcher block countertop. you can probably refresh the butcher block with a light sand and oiling. you could even get an additional piece of butcher block (ikea) and create a step-up 'bar' for some stools on the peninsula for some casual seating. then get a pair of pendant lights to hang from the pot lights above (they make lights that insert directly into the pot light...no hardwire necessary).