What do you currently like about the room and what don't you like? Without any major changes, the aspects which jump out to me include the following: placing some tall, potted plants outside to provide a nicer view from the window than the fence; replacing or adding to the current window furnishings to add opulence (i.e. thick, long, dark curtains in a colour complimentary to the feature wall) and perhaps also sheer curtains to obscure the view of the fence; a painting or potentially an ornate mirror on the feature wall (i.e. something that will compliment the feature lighting); potentially a large rug under the table if you wanted to soften the room and to add an extra degree of opulence to make it a really "formal" dining room; the addition of a decorative element to the centre of the table or potentially a table runner in a complimentary colour to the chairs; re-arrange the objects on the side table to form a more traditional vignette on one end of the table (i.e. a grouping of three similar objects, but with varying heights); potentially move the high chair, although that's probably not a very practical solution if it's used multiple times every day.

You could flip the living 90 degrees to the left, making the tv along that longest wall but aligned more left obviously. Depending on how much you wanted to spend, you could invest in joinery which incorporates the tv and books, which then also adds massive amounts of storage. Could be too long of a space for this set up, but stretched out a little with a nice rug it could work well :) please show us pics when you decide!

Other colours that work with red are turquoise, apricot, peach, any blues, yellow, even some pinks and greens. (Look to gardens for inspiration, or Old Masters paintings). I'd find patterns with combinations of those, or Vys colours, in a rug, and chairs or cushions.

imo the biggest challenge/cost would be removing all those big solid walls, changing doors and windows and repairing ceilings and not the extra plumbing (new bathrooms and kitchen cabinets, fixtures and appliances cost the same regardless of the extra few metres of pipes) and a new location can make the most of the available space but it can sometimes be more cost effective to add an extension rather than attempting to squeeze too much into an existing building but you need an engineer, builder and plumber to give expert advice on site ... better not to assume that one option is better than another but collect a variety of ideas and ask for quotes to compare actual prices but do you have a realistic budget? i would expect to pay at least $50,000 for a modest new kitchen and bathroom in the same locations before removing any walls or adding an extra bathroom and new laundry and the combined ens/wiw is too small and would be better to have a good sized ensuite with biw and there's not enough space for a bigger island without compromising space in the family dining area...there are so many different options but we need more info...are there any good or bad views, what is the length and width of the block, is there a garage, is there car access into the back yard, what is the distance from the house to each boundary, describe your climate, where is north on the plans, how many steps are there from the back and front doors to the ground, does the block slope and in which direction, how much headroom is under the house and in the roof space...is there any potential for an upstairs, downstairs or an extension into the backyard?