From the point of view of how we manage our time, which is unrelentingly finite, I don't find oil a practical seal for the traffic and spills of the kitchen area, unless you enjoy constantly tending something, cleaning and re-oiling regularly. Timber floor finishes have changed a lot in recent years. Polyurethane gives timber a distinctly tan/orange colour. Water based seals are a bit more expensive but far more durable in low sheen than polyurethane, and doesn't add that orange tint. If you wet a piece of your timber you will see a similar effect to water-based seal - it intensifies the marks, grains, tones and colour differences somewhat - just like wetting a dry rock or shell intensifies the marks and colours briefly. You can experiment on a piece of your flooring first before making a decision. Good luck with the results - I too think your flooring has great potential.

Consider a burnished oil finish. I believe this to be superior to layers of polyurethane which often cause boards to stick together and show the scratches. It allows boards to expand and contract. If scratched just use oil over thecsctratch and it will disappear. This would still be done by a professional.

Our last house and our current house both had wood floors and lots of wood furniture. Using area rugs (I've got a weakness for oriental rugs) provides separation between the floors and the furniture. And if the walls are light, as in LesleyH's photo above, you will certainly not feel overwhelmed with wood. The only time there's an issue in my mind is when the walls are also wood clad - that can be a bit confronting and needs management.

Feast Watson kitchen oil is 30-60 % petroleum naphtha. This maybe the reactionary problem. Ok time to fix. Sanding back starting with 120 grit and go through the grades...180, 240,320. Sand with the grain until you feel that all the blemishes are removed. Sounds daunting but the first strike with the sand paper is psychologically the most difficult. I'd stick to the Tung oil base and use Organoil danish oil. Brush on rub off with a clean rag. Let dry, sand back lightly, this time with 400grit and reapply oil and rub off. Let it cure for a couple of days and you should be good to go. Livos Kunos oil is also an option and would only take a 120 grit sand, apply, rub off. Let that dry for a day sand with 320 and reapply and rub off. The only problem is it is an expensive oil.