Much as I love wood blinds, in your case I would go with the white. I'm afraid the wood blinds would chop up this expanse of windows where as the white would give you a blank slate. You could always add color in roman shades, etc. (Love the flowering trees!)

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.

Thanks everyone for the warnings. Honestly I had not thought that could be possible so just in case I'll gear up with a mask to avoid inhaling any of it. I will still need to remove it, but from what I read the problem with asbestos is if you sand it and make it into breathable particles, so ripping it out should be ok. I've looked up in youtubr and there seems to be a tool called mastic remover that you can put on your floor sander and it would scratch the surface removing any of that stuff.

I agree with Diane's ideas! Grey is a nice color. The only thought I had on having a corner sink cabinet, you may not be happy with it in the end. You have a little corner, and the sink may be too small for you in the end along with not having any storage space. If you can't find any curtains that you love, try a cheap roller blind for now. It will give you a visual look and an idea if you want to stay with a curtain or going a bit modern with a patterned blind or even a roman type shade. It could turn the cozy look into a clean modern look. Framed mirrors are expensive. Call a glass company in your area and have them give you a price on mirrors. It might be quite nice to take the mirror down, and replace the wall there with a complete wall mirror to fit, stopping the mirror at the vanity, and continuing the mirror across the vanity between the sink and window. It will make your bathroom feel much bigger, even though you wont be able to see in the mirror over the sink. Close up the vanity doors with new door. Use props first (white poster to cover up the doors) etc. before you buy anything! Stick on tiles are a great idea! They clean nicely and look great. Although I wouldn't go with the wood look. Your bathtub tiles are old fashioned, go with a stick on floor tile that is easy to look at, try to get samples first. Remember Gray is a sleek clean modern color. It is not a cozy country color. If you don't like the grey in the end, maybe a real pale blue or butter yellow (that would be more of the cozy cottage look).