The tiniest kitchen i've ever had turned out to be by most efficient - it had to be! i miss it still.

1. I've used white laminate paint on dark doors with good effect. With children chips are inevitable but easily touched up. My sister used the same product over mustard coloured tiles, so it may work well on your tiles too. "White Knight" brand, from memory - years ago now. Do use the correct primer though - I'm told it makes a big difference. I don't think it would hold up for long on the benchtop, so relaminating or puttiing up with what you have are probably your options there.
2. Agree with others here re shelving or an "off the shelf" cabinet on the wall in the pic. I imagine you'll be needing all the bench space you can get with a family of 5 and a tiny kitchen, so install high enough to work under. You can install right to the ceiling, so may get 2 cupboards in there - put occassionally used stuff up high and treat yourself to a good "step stool" that you can keep near by.
3. Rails from which you can hang kitchen utensils - ikea has a lot of this sort of thing - keeps things off the bench but close at hand without taking up valuable drawer space.
4. Similarly a magnetic knife strip - I've found the cheapie sold at ikea far better than others I've paid 3 and 4 times the price for - but with kids around this needs to be installed quite high up or perhaps even inside a cupboard door - but not one that needs to be yanked firmly to open as this might dislodge the knives. An easily opening should be fine.
5. Regarding storage space, most standard kitchen cupboards - floor and wall - have 1 shelf installed but are of sufficient height to take 2 or 3 with only basic handyman skills required. This can double your storage space remarkably cheaply.
6. Hooks allow cups to be stored above glasses or plates. Plate racks - avail in Kmart, Big W, Howard's, etc - make it easier to get to stacked stuff.

Good luck with it and the new baby. Congratulations for both.
Susan.