I agree that a new sub flooring is called for. Your questions and concernes about wood and ceramic are shared by me also.
That pretty much sends you back to a good quality vinyl. This material is suited well for the traffic and spills in the kitchen. If you apply the squares, then any tears, cuts, scratches, can easily be replaced.
I discourage wood in the kitchen and also ceramic. Wood does come in contact with water, grease, andd other spills, Cemamic is hard, cold, everything breaks and the grouted areas are very hard if not impossible to keep clean.