Thanks to all who have posted their suggestions so far! How far up on the wall should I go if using tile or stone? The fireplace is up to current building codes for my area (Southwest Los Angeles County), but that doesn't say much since all that is required is for the fireplace to be properly vented to the outside - mine is vented to the roof like a regular fireplace with a chimney would be - and two feet from the walls, with or without the connector to a gas line ignition (mine has the thing on the wall but is not connected.) @pesky1 - I do have a lot of empty *blah* space on my walls, some of which is due to the vaulted ceiling height and being only 5'1" (If I had the storage space for it, I'd have a ladder taller than 4.5ft, but there's barely enough space for the one I have...) but the kind of tv I have can't be wall-mounted, so I'd have to save up the funds for a taller entertainment center. Still, it's worth considering. I've spent the decade I've been living in my place getting the funds together to purchase furniture and so forth, but now that all that's done with, I'm just now getting to the point of realizing I forgot all about doing something with the walls. I sort of ignored them after having them stripped of the awful brownish plum color selected by the former resident (who didn't bother getting the permission of the landlord whom I bought my place from...) and painted white just prior to moving in. It took me a while to implement the solution to the majority of the wiring being on one wall (literally, one living room wall had like 5 electrical outlets plus the cable wiring, and the other wall had just 2 electrical outlets and the wall switch for the patio light outside!) - I'm still working on saving up the money to have the bannister for the stairs stripped back to the natural wood that can be refinished, something I hadn't even thought about being an issue later; I just wanted to get rid of that ugly brownish plum color. Who knew that years later, all the dings and chips in the paint that happen over time would make the bannister look so awful. :P Painting is an option, but if I only go to a certain point on the wall, what to cap it with so it doesn't look like I just got lazy and stopped painting in the middle of the process?

Maggie you don't really have to wait for a remodel. You are adding cabinets on the wall side and adding a bit of countertop. Looking at NJ MOM's plan, you have the new counter on the left and will be replacing the counter to the left of the sink, so replace the little bit to the right of the sink, as well and you are done with counter tops. It is not unusual to use two different cabinet styles, so choose one on the left side that you will like if you get the chance to later replace the ones on the right. Chose a counter that meets that criteria, as well. The only other thing that must be done to achieve this is to fix any flooring where the peninsula was removed. Sometimes flooring continues underneath the cabinets, sometimes it does not. If there was originally a dining table space where it seems to everyone there should be in the end of this kitchen then there is a chance that the flooring was originally there and they put that peninsula over top of it. All you can do is pull off a cabinet toe kick and see. If the flooring continues, great! Remove the peninsula and even up any surface differences, and you are done. If this were my kitchen, I would love NJ Mom's plan. The fridge (which must be a narrow counter-depth) is across from your largest work surface, while also being on the outer edge of the walking area for the kitchen. It is right there, yet out of the way. Only the pantry is past it. You also have the secondary prep space now across from the range/oven. this is a narrower counter top, but it is still usable. It will be handy for lining up ingredients for what goes into a stove top recipe. But what I would really love with that counter would be a small space with no base cabinet where I could tuck a counter stool. Then I could have a place right across from the stove where I could get a load off after doing all the prep and getting a meal started. If I needed to be nearby to stir, or wanted to watch while something came to a simmer or a boil, I could hike up a hip and sit for a few minutes. Or I could sit there between steps in a recipe, but watch something on the range. All you have to do is leave out one 24" base cabinet to have this little desk space. I would also use it to sit and chop veggies, but I can't stand for long. Most people do not mind standing for food prep. In this counter area on the left you can have base cabinets 15", 16" or even 18" deep, depending on how comfortable you are with the aisle widths. Get some cardboard boxes and model different depth cabinets and see what works for you. You can plan on putting wall cabinets up, too. you just have to put them above your head. Think of the cabinets that are above sinks and you will know what cabinets I am thinking of. They may need to be a little higher, since the base cabinets here are not the 24" deep that the sink cabinets are. But a few things can be stored up there.

Thanks for the extra pics. That gives a much better sense of the space. Your furniture is beautiful, but I would scooch the chairs as close to the sofa as possible without making it claustrophobic, to give as much walk space around as possible. Perhaps the bar cart can go under the window next to the front door. That coffee table is wayyyyyyy too large. You might get a decent price at a consignment store, but it really throws the room off. On the wall opposite the sofa, I'd hang one huge piece of art. The art you have there now is hung way too high. (Not a fan of the bright turquoise in the other room.)

Here are some ideas on how you could do up your corner space. As it is just opposite the entry door, you may want to create an entryway. You could add a dresser/ storage with some art above (image 1) You could also add a slim console and a couple of chairs (image 2&3). A decorative mirror may also be something to consider here. If you'd like more storage you can also use a tall bookcase like the one you linked above. I'd recommend one large bookcase as opposed to the 2 you were considering. Here's a link to an interactive 3D build for your specific room where you could try all these possibilities and more so you can visualize your room before you decide what to buy.