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.

Thanks Fiona. I just wish people would realise you don't need to spend much to make things look good. Everything in my house is either a Garage sale or Vinnies find. I then do it up. I have done so all my life, as I grew up in a poor family with 8 siblings. I must say it erks my hubby but he's gotten use to it. People do walk in my home and always give me great feedbacks and compliments. I have just finished this room below. All this is in SAME room. I just want to show how you can make things look good without expense. The Chaise lounge cost me $80! I did have to add more foam which I collected from someone throwing couch on side if the rd, to the seating & fix the leg. The Floor rug $70 from the Reject shop. The Dresser I painted white was $350. It looks amazing. The wall behind this dresser, I painted with Dulux Pearl STRIPES, it's a suttle feature, but looks amazing. The chandelier $25, I sprayed it Latte and stuck candles on it as I have led lights in ceiling. The long book cupboard was stained brown & again I painted and the chairs on either side cost $25ea and I had the cushions recovered for $40ea. My favourite is the Leather Chair. I did have it covered prof., That did cost a penny, but it was worth it. Believe me I hate spending large amounts, when you can get a better solid piece than the crap that's around. You can see in the background my Dining setting with 8 chairs. That was $350. I just sanded the top of the table and clear varnished it! I can go on & on. As I have so many things I have brought to life. But just want to make it clear to all out there, that you can achieve your décor without spending heaps. Oh I must add, my Brown Italian Leather sofa ABOVE I purchased from ebay including a lge poof, again $350.The white coffee table above was also Brown stained. I purchased for $40. I striped it. Painted bottom white, then just left a clear stain on top as once I sanded it, I found the wood was so beautiful, that I couldn't paint it. The 2 single sofas above, were purchased from Vinnies for $65ea. I didn't have to do anything to them. This is not everyone's taste, but you can buy to suit your own décor. I would love to write a book on everything I have ever changed, just to prove it can be done. So people on a tight budget.......... You can achieve it. Hope this inspires a lot of you guys. cheers

Thanks for your help guys. The builder contacted us today during the installation of the ducted A/C and advised us that we have to drop the ceiling 200m to accomodate the ducts (unless we want a huge bulkhead across the kitchen/living area. SO the gorgeous high ceiling is (unfortunately) no longer an issue. It is really frustrating that they only just figured this out! :-/

Thanks for your comments, my concern was more about scratches, than wipe off splashes etc. Actually if anything the kitchen will get too much light as it forms part of an extension in our reno which will see high rise windows go above normal wall height windows. Resulting in a 3.400m or 11' 15'' high ceiling! It's an open plan area which will have an adjoining dinning area. The colour of our cabinets is a taupe - a bit on the mauve side, called Kashmir, we have increased the tone because of the increase amount of light hitting the cabinets, so looking at a sample in our current low ceiling area is rather tricky. Prior to the colour and texture change we were looking at a Platine grey - neutral and pale, and a texture matt - actually velvety, rather nice. Below are the colours we are considering, Kashmir left, Platine right. A splash back and the island bench top of Quantum Quartz, Statuario Quartz, the dark colour to the far left is Anthracite to be used minimally on some tall cabinets and under the island bench, the ruler represent the aluminium kick board. The cement look grey floor tile our new floor through out the open plan area including entrance. We have also changed from having a white coloured bench top, in a virtual horse shoe shape around the island to it being a darker mushroom brown/dark taupe. (sorry no sample) So guess I am still questioning these 3 new changes: gloss finish for the main cabinet colour (anthracite cupds will remain the velvety texture, these will have most of the light hitting them), the colour of the main cupds Kashmir vs Platine, and the introduction of the darker bench top, which will have a tone of light hitting it - to the point I think sunglasses on certain days will be compulsory). We are use to having grey tones in our kitchen - its from the early 90's. you can see here behind the swatches the grey cabinetry work we have been used too and the mid-dark grey marble floor we have had too. We will offset theses grey tones with a wood ceiling, vic ash either left as natural as possible, varnished clear matt or possibly even limed a touch. (pet hate is timber where tone is beautiful and then goes darker or worse goes to a yellow tone), this wood will go out under our eaves and be repeated under an out door eating area. Plus we will have a lot of decking. Will definitely introduce some wood in floating shelves, chopping boards, some copper or brass. Possibly glassy/coppery pendants in kitchen and dinning area. Any thoughts on my second guessing? Thanks so much.