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.

The blue is awesome (grey is too trendy)! The reason it stands out to you is perhaps because it's the only real colour there. Bring in the blue in a window treatment, a small appliance that sits on the counter, a pretty tray or area rug. Also, it is more appealing often if there are more than 2 colours - so right now you have a white and blue colour scheme - bring in red or orange or fushia - something from the other side of the spectrum (like you did with the yellow flowers but in a more permanent way)!

Lighting - pendants over the servery bench should be another feature that complements your chosen kitchen surfaces. So whilst I love the copper pendants in picture 1.. They could work depending on the rest of your decor and would be a highlight in a neutral white/timber kitchen = Good! If you choose copper you would complement it with a couple of copper bench top items. These are beautiful! (I collect copper because I love it, my kitchen pendants are silver, I renovated to sell in the next 3-5 years) You will see a picture starting to form in your mind and there is nothing wrong with making a statement with your lighting. I found that when I wasn't sure I would get a very strong sense of what was right and what was wrong for a space, then common sense or passion would determine the outcome! Here are another couple that might work, look her on Houzz under lighting, search pendants, then have fun looking!Timber tones with black or white to complement your cabinets... or Statement white pendants for a bit of quirky fun! Your personality can be reflected in your lighting and accessories creating that point of difference from the predictable white on timber look. Plus don't forget the power of greenery to punctuate the theme!

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.