And how about durability as a flooring option? I mean .. What is the expectancy of its shine, gel layer and life in general? In a nutshell is it a viable option for living room floor? And if yes, then would its edges match or would it still be like tiles where edges don't quite match?

confused choosing the color palatte .its a 7 sq ft kitchen. floor and cabinets would most likely be wood finished. what should be the color of tiles

Hello Diya, Go with light grey or pearl white wall tiles with overhead cabinets. If u want you can go for vibrant colors also, if used in proportion will give the happening ambience for small space. The functionality and store space has nothing to do with color combination. U can go for white ( light color ) cabinets with pop up wall tiles and a small suggestion if u can replace that counter top with light color finished top, that will change the space a lot.

you can transition, that's absolutely fine. if the kitchen is enclosed with an archway, it will take some of the awkwardness away for you. additionally, you can add a floor separator strip, or transition with designs on the floor. these will all work great for you