I think just removing the wallpaper and and painting (instead of adding more wallpaper) would make a big difference (particularly in the bathroom). Also, I would get rid of the current mirror in the bathroom and replace with a smaller framed type, paint the cabinet and new hardware. Honestly, I think just paint will make a world of difference in your space.

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 love all your ideas....bu as we currently have a new + good bin in there already, i don't want to spend another $100+ on another..and this is only a temporary solution...for the nxt few years..as the kitchen won't last much longer. I already have my 'kitchen' cleaning products under my sink..which is unfortunately a separate cupboard to my bin. We couldn't fit the bin under the sink! Prob not much point me taking the cleaning stuff out of my laundry to put in the bin cupboard!! I think i might put some plywood up beside the bin to keep one side of the cupboard separate! That way i have at least 1/2 cupboard of useful space!!

Third vote for getting a professional involved, but i'll still offer my layman's suggestion given that you're just soliciting general ideas at this point. If it was my space, I'd switch the bathroom and the laundry room around, keeping just one of the walls currently enclosing the toilet. Its hard to estimate precise measurements from the drawing, so it may not be feasible, but here's what i mean