Not sure where you're located, but a gravel driveway may help to soften the house versus asphalt or concrete. Soften up the area with grasses. Here's a link to a photo of grasses with a hot color palette http://www.spacemakerpress.com/catalogue/catimages/st05imgb.jpg You can always choose a more muted color palette as well. I would definitely tier the plan heights so they're taller against the house and gradually get lower. It would help to bring the house to human scale and not appear towering above. The pathway could be in a natural stone - the same color as the gravel driveway (if you can do gravel).

I love the color you have on the wall by the patio doors. I'd go with that all over if you want the space to feel warm. Or, if you want the rooms to feel cooler, you may want to go with sky blue or a calm green. The right shade of green brings in your outdoor plants, which looks very nice when you are looking out through the windows. Your flooring would look fine with any of these choices. Grey is another color to consider. I personally do not like it, yet is is quite popular now, especially with contemporary interiors.

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 wall opposite the couch could hold the TV - would need to mount it on the wall and that would take a while as we would need to get someone in to do it (I love my husband but he's not the handiest). Where the photo was taken is a three seat couch, so couches are in an L shape.