We moved in October and our house has a great 1950s wet bar - knotty pine walls, faded red laminate bar top, track lights, the whole shebang! We want to fully restore it to its original mid century glory - exactly the "ugly" bar you're complaining about.
The sink is disconnected and old, but we will restore it in a comparable vintage style. The kids love to hang out at the bar, have snacks, do their homework, and as they turn to teens, I expect it to be a fun place to hang out. In fact, my husband has been searching for the pinball game he and I played when we were first dating in the 80s to put in there. We aren't looking for glamorous, we are enjoying the kitch and fun of it. Too bad she wants to ditch it. It's a great gathering place, even if you don't drink.
I actually think it's a sad statement of how our society has changed when we take a room originally intended for fun, gathering, and relaxation and turn it into a room for solitude and work.