I would do a glass splash back [ this can be painted in your color choice to suit the decor ] - taking from the bench top up to the bottom of the range-hood on the wall of the stove. The window is beautiful and I would give anything to have them in my kitchen. I would probably paint OR stain and apply marine grade vanish to the would so that any moisture would not be able to ruin the wood. I would also put herbs or flowers there. Could it be made into a servery for outside maybe ???

The floor and cabinets almost look like the same color. I would lighten the cabinet color - making sure it doesn't clash with the floor color. I would also modernize the open cabinet above the microwave by removing the moulding, or adding a door. I'd find an inexpensive countertop that pops against the wood (or painted) wood cabinets. Change out the cabinet glass to clear, and do a new backsplash that brings it all together. And, finally add a cool light fixture, and maybe a kitchen rug.

Beautiful clean modern kitchen! You have a great opportunity to put your personal stamp on the space with a unique backsplash. As you've heard already there are some different approaches. I'd probably place the backsplash up to the wall cabinets and up to the base of the hood. Then continue the backsplash at the same height (18"?) behind the sink. Then place an inspiring colorful picture above the sink to break up the wall. Here's a picture with pendants that aren't too obtrusive. Having multiple levels of lighting at different lumens makes a more inviting feel to the space. I couldn't decipher your flooring, but you may also want to consider adding some nature elements like a type of wood flooring, wood stools, etc. Good luck! If you need software to plan out materials check out our Home Designer software: http://www.homedesignersoftware.com/

Your suggestions are really greatly appreciated. My town house unit is under complete exterior re-cladding works, prompting quite substantial interior makeover (i.e installtion of ducted air con, replacing wall to wall carpet with timber upstairs, and tiles in open space downstaris, replacing creamy wall paper will be replaced with neutral white paint. So my green kitchen with creamy formica counter (bench) top should go. I don't hate green simply had egounh of it after long 15 yeras! My small U shape kitchen is due for complete makeover, I think! I'll probably go with new cabinets (lower one for microwave) up to the ceiling, when move fridge at the end I'll go with panel with matching colour up to the ceiling, expanding counter top on the other side to the fridge. I guess that removal of the cupboard can be compesated with extension of the counter top so we can fit 3x drawer underneath and cabinets up to the ceiling can provide some useful storage space. Backsplash in same white palette or darker in contrast? Your kind ideas please!