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 wish I could post links to pics of others' houses that are already on HOUZZ. Does anyone know how? I've been inspired by a project called "San Francisco Mid-Century Mix" on here.

You have "wear through" which is when the finish is pierced and the wood is exposed to the elements. The dark areas are where dirk/water/mud have stained the floor. It is possible to get this out... but probably not all the way. A floor that has wear through needs to be sanded right down, stained (if you wish) and then refinished. Patching can occur...but it is almost always a waste of time because the "look" can be very different from the original sitting right next to it. I don't recommend it for your situation. The second photo shows the deep scratching. Ideally, you would have had your floors looked after BEFORE wear-through occurs. There are some "regular" scratches to the Left in photo 2. You can see it is visible...but no discolouration....THAT is where you draw the line. The darker "wear through" to the Right in photo 2 = too late = full sand and refinish. If you catch it BEFORE wear-through, you can do a "buff and coat". This is a light sanding with a few coats of high end finish over top. The buff and coat is roughly half the price (in Canada at least) as a full sand/refinish. For this reason it is important to catch the floors before you get to this level of scratching.. That being said, you now get to pick some stains (test patch, test patch, test patch). The first photo shows two different woods...you could ask to see if the lighter would could be matched to the darker wood (lots of testing to achieve this). It won't be pefect...but then again you wouldn't have used reclaimed building materials if you were after "perfect". The match can lessen the colour variation to a more manageable (design wise) level. As for "good for dogs" - natural colour of wood = best colour for scratches. A lower gloss (like a satin) can help. You can ask for the "best" finish with scratch resistance that comes in a can. You will pay a premium for it...but it could/should save you thousands of dollars over the long run. A highend, scratch resistant finish means you can get away with the cheaper buff and coats (every 7-12 years...or so) and be able to retain the original (expensive) finish for the full 25 years. The other thing to note: dogs claws require trimming 2-4 PER MONTH when working with hardwoods. This is what the hardwood flooring refers to as "routine" trimming. Some of my clients thought "2-3 PER YEAR" was "routine". I laughed. You have heavy, high energy, powerful dogs. A single lab can cause some damage over time. Two labs can do a number on a floor. Three labs and you have a very short lived hardwood finish. You have 7. I would find the most expensive, scratch resistant finish available in Australia. I would have the maximum amount of finished put your floors (you will pay extra) it and I would budget for a "buff and coat" every 5-7 years.

Get the professional sander guys in to repair the living areas and kitchen but don't go too dark with the stain as it will kill the lovely grain in the matai. I'm thinking a couple of tones richer than the timber knots showing in your photo, definitely no yellow tone at all. In NZ stepping on to carpet especially in a kiwi winter is so much nicer than a cold floor board shock!!! A nice area rug for the lounge and you're done.