Nothing is impossible :) Heat resistant tiles are available ,look at these for instance http://www.alibaba.com/showroom/heat-resistant-ceramic-tiles.html

Hi. Your kitchen to me looks large, certainly big enough for a table and maybe some seating (from what I can see in the pic anyway!). I personally wouldn't knock through unless rooms were small and needed space for furniture. I cook a lot and would hate the smell travelling, the noise and the mess etc. if the house has 2 living areas it's also nice for family members to have their own space at times. That's just my opinion though and what works for me and not you! ! Have you looked at pics where people have done the same thing with similar size rooms? Or is there anyone in the road with a similar house? Re paint, are you painting the units or just the walls? I would probably change the kitchen floor regardless if you knock through as its absorbing some of the light.

Hi minnie101, Thanks so much for your detailed reply. Great to know what colour that grey is. It may be a little dark with our floor. We will definitely update the handles - I hate the current ones. We'll probably go with wood to keep within budget. Your non-tiles pic is lovely. We'll probably keep some tiles and try to keep the kitchen a little more modern than country kitchen, which might be a challenge with wood. The room faces south. I like your idea of dividing it with paint. We probably will go with white in the kitchen and then 1/2 slightly darker tones in the tv-couch area. The 'other' entrance into the dining area is narrowed by a non-structural wall, so we should remove this to open it properly or like you say, close it off. Maybe not close it off entirely as we'd lose a lot of light, but maybe put in a counter or breakfast bar if space allowed. I love your pendant light suggestions over the dining table. Details like this and a rug in the couch area will really help divide the room as at the moment it is one big cavernous space. I really can't decide yet what way the couches should face - into a tv in the corner, or out into the room like you suggest. We'll have to draw out some chalk outlines on the floor and see how much space there actually is. Colour-wise we like the idea of keeping walls and cabinets quite stark, the wood counter will add a bit of warmth, and then adding colour with couches, rugs and possibly dining chairs. I've attached a couple of pieces of furniture I like. Some may not work, but we'll figure it out.

For an overall sense of a dramatic colour change I'd suggest using Crown paints room painter app. It wouldn't be accurate for exact shade like a tester pot is but it might give you the confidence to make the change! Take a good photo of your room and try it out. It can be tricky to use when there are lots of items you don't want to paint e.g. kettle, so best clear any clutter first. I've messed with your photo as an example