Plumbing lines, uncapped electrical wires (i.e., freely hanging), vent ducting opposite what you imagined, to name a few. Until you get that soffit down (a little at a time rather than a plunge), you won't know what's up. I'd hope you at least have some friend with you when doing this to help out. How big is your current vent hood duct aperture? That may help you a little-it's sometimes easier to re-route or re-place a 6" round than a bigger 10". Good luck.

I would replace your pendants and hardware with bright shiny polished nickel and get an elongated subway that could be done in herringbone or traditional subway style, matching grout. Start with lights and hardware and see..... https://www.shadesoflight.com/products/highland-park-pendant?via=57e1330169702d78ae0000a5,57e95f6869702d76fe000001 https://www.wayfair.com/home-improvement/pdp/top-knobs-dakota-charlotte-6-center-bar-pull-w000760448.html?piid=165392703

Below I show the kitchen painted in white but the same idea could be done in another colour, painted all the same colour unifies the different styles of the cabinets. Instead of small pulls in the center of the doors, I show long ones giving a more modern look (holes simply need to be filled and sander prior to painting). I suggest you paint al the mouldings above the cabinet sections in white. You can replace the countertop with a laminate such as Formica Basalt State honed which really looks terrific. I would replace the fan with a nice ceiling light, I show a Vertigo pendant. I suggest you move the fridge at the other end of the room and install a high cabinet next to it and a cabinet above the fridge continuing the line of cabinets at that end of the room. That also frees the area at the other end where you mention you'd like to do a nook of some kind. I don't have the dimensions of the room but I would think a small island and 2 stools would fit. Everything I show is not too expensive and available at places such as Ikea (cabinets), Amazon (pendant & pulls), laminate ( places such as Home Depot), Target - Walmart (island).

Deegw Yes all the appliances seem to be in good condition so thats good! I hadnt even thought about the shape of the island. I dont think we want to take that on.. changing the island shape for cost reasons. But then again I have no idea how much that would be. I do want to update/paint the backside of the island and add some wood trim work to update it. Im definitely removing the wood valance in the kitchen and also the one in the living room that matches . LOL . The current floors are very old.. the very thin old laminate type flooring.. its already peeling up and chipping in some places.. plus they tried matching the flooring in the bedrooms so we want it all to be one flooring. Thanks!