Go for the undercab lights. Often, that is all I use. For sure when I am working at the counter. I also have recessed cans. They are all on dimmers. One thing I would do differently is to have more than one switch for all my undercab lights. There are times when I don't need them all on. (I have 8). My counter is L shaped and sometimes it would be sufficient to have only lights over the sink or coffee pot/toaster on. You will never regret it. Remember, the older you get the more light you need. Sigh....

Our kitchen is similiar, not a lot of natural light. We used halogen recessed cans in the ceiling. You'd be shocked at how much light they can throw off, and they are not too concentrated in one spot. Just make sure you have the right kind of reflectors in the can for more general wide lighting. They also do illuminate the ceiling from light that bounces back up. We put halogen pendants over the island, but they are more spot, as they are concrete and only light the area below them. All the halogens are on dimmers, so we can control the amount of light and heat they generate. On dimmers, halogens are very efficient and "green", using less electricity. Under the cabinets, we put in xenon. They stay cooler. However, to be totally honest with you, we never have all the lights on at the same time. The halogens illuminate the kitchen so well I hardly ever use the undercab lights, even during meal preparation. The xenons usually come on when the halogens are off during a dinner party (we have a huge great room kitchen arrangement). They function more as mood lighting than anything else. If I did it over again, I'd probably even omit the undercab lights altogether.

I am not an electrician, so please consult one before you believe what I say. My understanding is that you can get a dimmable transformer (either plug in or direct wire) to step down the voltage. It has to be put somewhere between the switch (full voltage) and the lights (low voltage). Actually you can put it in before the switch (between your panel and the switch) and get a low voltage switch too if you want. Mine's in my sink cabinet. You can put one in your basement or if code allows in your area, it can be in a wall cabinet. HOWEVER, to run wires in the wall you need special low voltage wire that is rated to run in the wall. I got help from inspiredled for my project and they walked me through it. Another brand people like is environmentallights. I also had an electrician, but he wasn't super savvy on the low voltage thing so I had to research myself after he wired my kitchen with romex (full voltage wire). Which you can get adapters to use romex with low voltage lights but it's just a bit bulkier and uglier. So I got him to pull the romex and replace with specially rated in-wall low voltage wire.

I'm kinda late to the party here, but I need to make a decision in a hurry. I like the idea of removing the outlets from our wall and placing them under the cabinets so that they don't break up the backsplash as much (nothing sits on our counters permanently). Additionally, we want under cabinet lighting. Our electrician is coming Today and Tomorrow after his normal job and I need to have a plan in place. I plan to direct wire the lights if possible, and would like to be budget conscious. I don't have a fixed budget in mind, but under $500 would be preferred. We have 2 15" cabinets that flank our range hood and a stretch of 66" that all need to have receptacles and UCL. I have ordered light rails with our cabinets, but would prefer a low-profile option if it exists. I know there are some really smart people here that know what will work best for me. I am hopeful that they see and respond to this message in time. Thanks in advance!