The first thing I would do is paint the walls. Either a very light neutral beige/white like your inspiration photo, or a very pale blue which would be beautiful in your living area and would work with the kitchen as you have it. Choose a white with just a tint of blue, and your beiges and blues will look like the sand and sky. You may not need to change anything else. If you want to continue with the kitchen, I'd use a white/beige quartz countertop with white backsplash. You can just remove the valances and leave the windows bare, or you can use drapery panels on the dining room window with a longer rod.
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