No side-lighting (either in the hotel or mine).

The following will be helpful. Yes, dimmers do work with 3 way circuits. Here is a link that might be useful: recessed can placement discussion

We just put in 4 inch recessed in our Family room and the bulbs that I found were 45 Watt or 40 watt halogen that burn at 40 but give off the light of a 75 watt bulb. Four inch might be a little small to give proper lighting in your kitchen. We are planning to use five inch in the kitchen per our contractor

Well, it seems pretty good to me from a functional point of view but....I'd put something dangly over that baker's table, or even a downlight sconce. Why? Um, because I'm short and I wouldn't bang my head, and because I like dangly fixtures. I might even be tempted to splurge on one of the adjustable pulley-type pendants, but that might be a bit much. What's going on the wall over the baker's table? Maybe I should ask that first. And of course you already said what's going there--shelves. So never mind. :) I'd still be tempted to do some dangle. I'm not always very practical.