Try on design dilemma - you'll be inundated with a range of advice of varying legitimacy and worth. Filter thru it accordingly. Regards

The floor plan that is shown on grid paper is roughly to scale. 1 square is 1sqft (sunroom is 20 x 9, living room is 22 x 16, etc.) I can put sqft on the drawing when I get to my computer later if needed). As far as budget goes, definitely less than $100k (ideally closer to $50k). Labor is not very expensive where we live and I have discounted material options. That is why I initially thought switching kitchen and bathroom would be most economical since it’s off grade and would mainly just be removing interior walls that aren’t load bearing.

I feel like hardwood-look tile is a passing trend. You would be better served to do hardwood in the main living areas plus kitchen IMO. I, like your wife, appreciate lighter floors and have a natural matte finished white oak in our downstairs (except bathrooms and laundry). As far as bathroom tile, maybe look through Houzz or Pinterest and see what looks capture your eye and go from there. I’m not sure about wood on the walls, especially if you are thinking wood floors. Can’t go wrong with a smooth sheet rock finish!

If a dressing area is desired, then that can be an area that transitions from the bathroom directly into the closet. As it is now, you have to exit the bathroom and walk all the way around the king bed to the closet. Also, a note about the ceilings. It doesn't appear to be a vault from the roofline (doesn't continue through closet), so a tray ceiling sometimes causes odd layouts of furniture and defines spaces in how you don't want them to be layed out. A large tray as represented here may also cause unwanted situations with lighting and odd corners where different slopes meet.