Depending on you budget, I'd replace the counter tops and flooring. I agree with removing the dark valances. Replace the top corner cabinets with 42" cabinets or remove entirely. The ones there are too small for the space. An island, not that you need the counter space would cozy up the area. Also replace the front on the dishwasher with stainless steel to match other appliances. Your layout is good, no changes there! If you decide on an island, you could include stools there and remove the current peninsula, this would open the area to what ever room is adjoining the space. Good luck and have fun. It is a really nice space.

Photos of the kitchen would be helpful.

Yes, measurements would help. Thank you aldrea1 for other explanation, though. That helps too. It sounds like you are going into a total gut-job! I love this! Great opportunity for your creativity. Also, it looks like you have a petite sized stove. With total remodel you can upgrade to a standard size range. Is this part of your plan? Are you going to replace any appliances? It would be good for you to keep sink and stove in original locations. It is complicated to move the stove's exhaust fan and the sink's plumbing. Not impossible, but probably $$$$$$$ and a lot of hassle…. So, I would start planning with those items--stove and sink on current walls. Wherever you put your refrigerator, it would be best to be sure side view is hidden. If refrigerator stays in current position, you could make peninsula a little smaller, so wall on the right of kitchen entrance could extend further and hide refrigerator edge----Or, move refrigerator to another location… Not too far from sink and counters, though. That would cause you inconvenience. You want a work triangle with not that many steps in-between. Do you currently have a dishwasher? Or are you planning to add one? Not much creativity in placement of a dishwasher---needs to be near water source and drain.. Are you doing the work yourselves or hiring a contractor?

If this photo from your ideabook is the look you are going for, try adding a rug and inexpensive coffee table. To keep budget down, try an indoor outdoor rug you may find on sale at the end of the summer. The other thing you could change easily would be curtains or other window treatments in a zingy color or pattern. Perhaps there are curtains in another part of the house that could be swapped with these? Try taking them down to get a good look at the blank space possibilities.