I think you have a great space to work with. You mentioned you love the farm house style and you like that style sink also called an apron sink. Paint is by far in my opinion the easiest, least expensive and most dramatic transformation tool so use it. If I was to update it I would do the following:
1st paint only wall panels a pretty white or even cream color
2nd paint the cabinets with something fun. If your not scared of color, red is awesome or even. Deep black.
3rd leave the soffit trim it will help break up from the ceiling and cabinets if you are painting them
4th There are many cabinet materials on the market. Laminate is ok but if you can invest, do it there with granite or quartz
5th flooring is an easy fix and all comes down to budget. Laminate wood floors work great are cheap and are still durable. My second flooring pick would be a simple travertine with earthy tones.
6th add a nice roman cloth shade to the window.
And now you have a farmhouse updated kitchen!