Thanks for all the feedback everyone! We are taking it to heart, but are now more confused. We really like the idea of an island with seating area that's facing the stove so that friends/family can sit and chat with us while we cook. But it does seem like it throws off the rest of the kitchen. So there are two things we should mention. First, we already have a separate formal dining room (behind the top interior wall), so this space is just intended to be a casual eat in kitchen and entertaining space. We don't need a large table or tons of seating here; I drew the kitchen table at 42" wide, but we could easily bring it down to 36" or 30" if it's too cramped. And there's no need for anyone to sit on the end; I agree that it would be too cramped between the fridge and the end of the table for anyone to be there. Another thing I didn't mention initially is that there's an exposed ceiling beam running from the brick pillar down to the exterior wall, and it forms a natural partition in the room. You can see it in the photos I posted above. It would be weird to place a table underneath that, both because it infringes on the walkway on the left and...it just wouldn't feel right.

Relieved to hear the wallpaper is the straw color and not the peachy/pink it appears to be in the photos! Did you investigate putting wallpaper up in bathrooms? There might be a specific glue you should use, for instance, which can withstand dampness and keep the wallpaper from peeling. Are you going to do all of the walls in the paper? I hate to add to the labor, but personally, I think you should. It's beautiful paper and that Tahitian thing would be so beautiful. LOVE the chocolate browns you've picked. Make sure they don't have purple or raisin-y undertones and are truly chocolate, i.e.: black undertones. Also agree that the rug wouldn't work. Too much dark brown. Also not sure about a shag rug in a bathroom, what with hair and powder and all kinds of small stuff floating around. I think you want a rug that is easy to vacuum and can withstand dampness, hence my suggestion you get an indoor/outdoor rug. I think that rug from Plow & Hearth I put up would be so gorgeous with that wallpaper and that brown. Do check out Plow & Heart indoor/outdoor rugs. They have an amazing selection. Also, a LARGE rug. Not a fan of the leaves on the wall, but if you love them, they should stay. I'd also take the ceiling fan out and just put a nice light up there. Maybe something like this:

Between the two I'd go with the dark as well, but if you want 'wow' I'd do one in navy, aubergine, something that goes with the other elements you've selected but is unexpected.

I have rock mulch around my house and it is a horrid, horrid thing. I'd take it out, bit by bit, year by year. There are hardy plants that can grow among the rocks though. Just get on top of the weeds like YV says. However, at this point, you'll need vegetation killer, the stronger version of Roundup and don't let anyone go around there for a while as it is working, follow the label directions. Be careful as blowback will kill any plants you are trying to save so not on a windy day. You have to stay on the weeds, particularly in a rocky situation. The seeds have places to hide. It's at least two weeks after typical herbicide use before you can plant. Again, the label should tell you how long for sure. If you don't want to use herbicide, then it will be an every day pulling. My husband and I have a nightly ritual when I get home from work (if the mosquitoes aren't too bad). He sits outside on the recliner with cool beverage of some sort, and then I weed. After that, he makes dinner and I have a cool beverage . . . Or I put in 15-20 min. in the AM before I go to work. Your weeds shouldn't be that hard to pull or take that long. Enlist the help of a neighborhood kid for some pay, should not be too expensive . . .