You might as well add a wall there if you want cabinets to the counter. You'll get more storage.

I don't think the cabinets to the right of the cooktop have to be higher if they are the correct distance away.

I would probably finish that end off with a wall the depth of the upper cabinets that finished at the corner of that soffit and put the cabinets in that new corner down to counter level.

thanks greendesign and palimpsest, I like your idea. I may try to mock up a wall there in photoshop. Unfortunately we can't move the cooktop because of the vent to the ceiling and other logistical reasons, so the cabs have to come up. They are also too low in person.

Something like this. I didn't realize I was leaving amputated stuff under the counter.

From your other view:

wow, thank you, pal. I like that look and it's much more functional for us. Gets our ugly TV off the counter and creates a place for our junk zone.

Do you think we should paint the light soffitt a different color? Our architect is trying to get us to paint it something other than white.

I would keep the peninsula, but I would not put uppers over it.

Place a base unit with a lazy Susan/pullout in the corner and have the rest of the peninsula be made of base cabinets with drawers. Do not hang any upper cabinets that will interfere with sitting at the peninsula, which you will do more often once the tv goes on that wall. For the base cabinets in other parts of the kitchen, use as many drawers as you can as I find drawers store more stuff than just doors, especially if I have to bend down. If you still need those upper cabinets with a functional corner base and drawer bases, then there is a chance you might have too much stuff :)

View from farther back

I like what palimpsest has mocked up for you.

I just signed in to houzz to look for inspiration ideas for my kitchen and this was the 2nd kitchen that popped up.

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[Contemporary Kitchen[(https://www.houzz.com/photos/contemporary-kitchen-ideas-phbr1-bp~t_709~s_2103) by Madison Appliances Sub-Zero and Wolf

Quite coincidental since I had just read your question about painting the soffit a color other than white. I think you should go for it! (disclaimer: I'm an inveterate lover of color.)

Funny you thinking of putting cabs in..I can't wait till I get hubby to rip ours out over the peninsula. Lol..am even considering zero uppers in the rest of the U.
But I really like the 3 photos you show, with a counter to ceiling cabinet on that inside wall. Another great option.

I will be folllowing your process on this.