I'd be inclined to move couch & armchair along wall with large recess if they will both fit. Mount TV onto flat wall opposite. You could have a low unit to house electronics, or use the one you have. Have purpose-built storage cabinet w/shelving built into smaller recess. Some of the shelving portion could be backed w/mirror to help throw light into room. Use the shelves for books, objects of art, photos etc., and the drawers or cabinet below to store things you don't want on show all the time. I also think a large area rug will ground the family room area from dining/kitchen. A neutral one perhaps or you can inject some colour. Large art pieces on wall as mentioned. A largish plant in a raised pot would add some greenery. You may find you need a floor lamp near couch & chair. Regarding the kitchen, I think you might be able to fit a narrow timber sideboard at end of island bench so you have some additional storage there. I say timber because it would warm up the coolness of kitchen. I agree undercabinet lights good idea for additional task lighting. You could either go mirror backsplash or some gorgeous tiles. As there are a several changes you want to achieve in this space, it might help to do it in stages. Storage seems to be a priority (fam rm & kitchen) and rearrangement of furniture & TV. I would tackle this first. Additional decor ie rug, art pieces on wall(s) could be addressed next. Then splashback and some additional lighting if budget allows.

Suggestions from neutral colours: https://www.dulux.com.au/colour/colour-trends/2018/essential Ceiling & walls the same colour is a good choice for square set. There will be subtle hue difference in various lighting situations anyway, which provides depth and makes for an interesting look.

Your floor and other wall colours are great but Red (orange), black and white are very harsh together, the wall cabinets either side of the range hood have been badly installed, they should have been built to the ceiling. My suggestion is because the kitchen is small, I would remove the cabinets either side of the range hood and then run a row of white cabinets across above the sink to the end of the bench top. Paint the walls white or a soft grey, the range then becomes a stand alone feature. You didn't mention what the splash back material is but I would consider a clear mirror splash back along behind the sink and up to the base of the new white cabinets so that you're not just looking at a wall. cheers

As said by big reader...leave white or paint the same colour, without the brushed finish, on the other walls. You can not bring another colour in. There is enough colour already with the orange wood and the bed cover. Also, the curtains look too small to pull right across your window correctly. They should be waved not flat when closed.