Think about your small kitchen cabinet not as a dilemma, but the opportunity to be creative. The fact that your kitchen does not have much floor space does not mean they do not have space. If the ceiling is relatively high (or if you can make it high for the removal of a false ceiling), find a way to take advantage of that room. Design cabinets are tall and thin.
Kitchens are the only place in your home where you can enjoy all the latest high-tech devices on the market and not look like a total geek. A lot of these devices are designed to take up as little space as possible. Everything from coffee opener to the miniature television sets can be purchased in styles that hang below the upper small kitchen cabinet.
Save your deep, dark colors and natural wood finishes for larger rooms. Bright colors accented with lots of white are best for a small kitchen. Light colors tend to open a room visually, while dark colors tend to close it. Although an all-white kitchen is probably not what you want, using white on the ceiling and walls with light colors for small kitchen cabinet and countertops will create enough contrast to give the illusion of depth to the room.