Patti,
I’m answering this on the rush.
1) yes, wood on all of first floor on a townhome that is 1,400 sf is usually best. Get a big area rug for the “cold factor”.
2) If cost is not the issue, go with granite and yes match the bath and kitchen. 1,400 sf on two levels is not large enough to play mix and match.
3) Paint looks cheap too. Likely the best answr is to restain them a color you like better.
Hope that helps!