I would remove the pendant lite and get a close to ceiling fixture. Need not be spendy.. Then you can place whatever table you have or get something on Craig's list to begin using the space. The fireplace can be a decorative corner with the ledge..There are many table/chair sets on Craig's list. The issue may become size/configuration....drop leaf/pedestal/round/rectangular.you can't know what is best initially...but I would pretty up the space and use it for certain.

Thought to add island going toward pantry make an L shape then put bench and table chairs there. Make the pantry doors bifold or sliding so they don’t get in the way. Add some counter toward living room for Couple stools and use as buffet. What do you think

Hi Diana Garcia , Wow, sounds like you're trying to juggle a lot! Let's see if we can help. Rug: Not sure having one in the eating area is essential. It will quickly get dirty & creates awkward movement of the chairs. You have beautiful floors & lots of natural lights - the right curtains would really frame the space nicely. Light Fixture: Painting the fixture has it's own issues b/w heat & chipping. The color is less the problem than the faux-candle light fixtures. A modern pendant would really spruce up the space. Curtains: Gray curtains would fade into your color scheme, making them look bland. Look for something more colorful & let your crown moulding be seen! You don't have to paint the cabinets - an update to fixtures & appliance would go a long way. Possibly the countertop if that's in your budget. For some low-cost options, please check out my video below. We could also share an ideabook here on houzz, hit me up on my profile. Thanks, -frank Build Beautiful Homes

It looks much better from that angle. Here's a really simple 50" navy valance. Not sure of your window width. https://www.wayfair.com/decor-pillows/pdp/canora-grey-mcconkey-straight-pleated-50-window-valance-w002435182.html?piid=418413909 Target has one exactly like it for 1/2 the price. https://www.target.com/p/vanderbilt-straight-pleated-window-valance-50-x-18-navy-sunveil/-/A-78666979?