Any suggestions how I can "update" this undercabinet light fixture?

Here is a link for making an attractive fixture that can be adapted to direct wall mount an for size. Add industrial bulbs and it should be gorgeous! https://www.thegatheredhome.com/how-to-make-fabulous-plumbing-pipe/

Hello Jim, Perhaps something a bit more "industrial" looking, like a triple light wall sconce (or a more economical double sconce). That was my first thought when I saw the area in question... somrthing like these in the links below:

https://www.wayfair.com/Trent-Austin-Design-Schaff-2-Light-Wall-Sconce-in-Mission-Dust-Bronze-TADN2078.html

https://www.wayfair.com/Innovations-Lighting-3-Light-Holophane-Glass-Wall-Sconce-INNS1051.html?source=hotdeals&PiID%5B%5D=14967987&PiID%5B%5D=14968034&PiID%5B%5D=14968035&PiID%5B%5D=14968035&PiID%5B%5D=14968036

There are several wall sconce ideas on the web, and if there are stores near you like Home Depot and Lowes, I am sure you will find something you like. Good Luck Jim and thanks for using Hometalk for suggestions :)

I would be inclined to remove the fixture and run the wiring up into the cabinets and put in undercabinet lighting for the entire stretch. You would have to patch the holes but you could do a cool backsplash as cover.

What you have a cheap vanity light. Considering the space you have none of the products the other posters provided would work. For an update you would need a tubular vanity lamp that would give the modern look. You can check the home centers on what you like. Here are a few ideas that would work.

https://www.lowes.com/pd/Style-Selections-2-Light-5-in-Brushed-Nickel-Cylinder-Vanity-Light/4745157

https://www.lowes.com/pd/Style-Selections-Dolante-2-Light-13-375-in-Chrome-Cylinder-Vanity-Light/4764554

Strip lighting. place all the way across under your cabinets. Got mine at Costco and took minutes to set up. Then it just plugs wherever you want and I stuck the extra plug in wire up under the cabinets also. You wave them on and off and dim them or brighter with your hand without touching anything. It comes with a motion sensor, so at night I can dim them enough for a nightlight. Good quality too as Costco most often is. So no extra wiring or screwing. Just double sided sticky tape and plug 'er in!. I bought stronger tape to be sure. Oh and the strip lighting is super light in weight.

I have seen people use rope lights under the counter

Maybe you could fix a piece of Perspex across the cabinets further to the front which woud hide the fitting and hopfully spread the light when you use it.