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 could see doing something like French doors with opaque glass so the lite could come thru to the rest of the house. Also double French doors would allow you to open the area up completely whilst doing laundry. You could even leave everything where it is (dryer) and build some storage on the left side. I would image the sink would be very useful - I'd be lost without mine in the laundry room.

These houses were designed to look good from the street, regardless of what the orientation was for the Sun. Everything depends on your budget and how far your prepared to go. A friend's house in Queenstown faced the street, the toilet and bathroom had the best view of the lake and the Sun. They got a house removal Coy in, jacked it up put it on the truck drove out and turned it around and reconnected all the services. It then faced the North and West great views and warmth, doubled its value in 3 days!. I replaced my storage water cylinder with a outside gas one, picked up enormous space in our laundry. Another tip is to draw up your "dream" plan, then overlay it over the existing and see what you can really do, your then not influenced by what is already there, and often get a much better insight and removed from the existing. Good luck, its very rewarding and make it fun!

To me it looks like it would be better to have a smaller kitchen as being a 1 bedroom place the living/ kitchen area is quite small. I think having the essentials along the bedroom wall is good but the island makes the living area too small in the first plan, and in the second the cabinets make the walkway too narrow. I would put sink, fridge, oven along the bedroom wall then make any other bench and storage space more like moveable furniture to make the living area seem bigger. The kitchen may be able to be shut off behind doors (a bit like a euro laundry) when not in use to make a much bigger living room, especially if it isn't used a lot.