Explore the foundational concepts such as atomic structure, chemical bonding, thermodynamics, and kinetics, elucidating their significance in predicting and explaining chemical phenomena. Investigate the role of theoretical frameworks like quantum mechanics and molecular orbital theory in describing the behavior of atoms and molecules. Furthermore, discuss the applications of theoretical chemistry in diverse fields such as drug design, materials science, and environmental remediation. How does theoretical understanding empower chemists to innovate, predict outcomes, and design novel chemical compounds with specific properties and functionalities?