I live in an apartment with a fairly small kitchen and I have nearly every small appliance known to man. I've found the key to cooking with so little counter space is organization (I know it's a dirty word) and only taking out what you actually need.
When you're making a multi-stage meal with whatever will take the longest to cook (usually the meat). When you've put it in the over clean up. Put away the spices you're done with, wipe the counters, wash the cutting boards and knives and start fresh.
As far as how to deal with the 48 appliances, various baking dishes and storage vessels I go I go by the principle of most use. Whatever I use most often is in the front of the cabinets and easy to access My Ron Popeil Rotisserie Oven is way in the back behind the cake taker and the big serving bowls. You also need to take into account how heavy some things are. You don't want to put your 20 lbs mixer way above your head, you'll never use it.
Apart from the storage issue there are some advantages to cooking an a smaller kitchen. I know everything is within 2 steps of where I'm standing. This is actually a blessing and a curse. It's great when I'm alone. No one to trip over or step on. When I have people over my tiny little kitchen becomes the center of the universe. So I end up asking 4 people to move so I can open the oven door.
there are 2 other bonuses I know of. I can't buy every gadget and gizmo at the home stores which saves me all kinds of money. And I'm forced to get rid of things I am not using. I just got rid of an espresso maker that's been collecting dust. Don't get me wrong I like espresso a lot but I'm a bit lazy and I have a programmable coffee maker. It's way easier to pour a cup of coffee than to steam the milk and wait for the fresh espresso.
In short: be organized and get rid of things you're not using.
