There needs to be a rug and the thin lines of the legs of the furniture are not working with the wood floors. It makes them look insignificant. Also cut out the dark brown tones and chose some more refreshing colors.

Wall sconces are for additional lighting mostly decorative you need ambient light, task light and decorative light in a space the downlights are the best way to get ambient light which the allover light you need then lamps for reading or any task that requires good close lighting and then your sconces

Having been brought up in a Lockwood home I can appreciate your love of the wood. I notice you have a light green bench and that would blend nicely with some similar colours in the room. I would consider having your cupboard doors replaced or sprayed to compliment the bench or visa versa you can have your bench updated with a new finish to modernise it. Perhaps you could just price out the cost of a new bench and leave the rest of the kitchen as it is. The odd bit around the dishwasher looks weird and that might be able to be fixed by curving a new bench into a small breakfast bar type set up. If there is room I would also reposition the microwave to the right of the cook top and use the existing space for a display or a lovely pot plant.

I think paper lanterns are a great way to bring comfortable light into a room. light that softens up and sets a comfortable mood. Because of their pliability, it has an added decorative element as well.