I don't know enough about what the codes mean to make any useful suggestions, so I'll let the layout experts do that. But here's the picture so it's easier for people to view. Also, do you have any elevation views so people can see more what you're planning? Or it might help to label things, such as where your trash will go, aisle widths, what the connecting/nearby rooms are, etc.

Where do the doors lead?

What is the flow in/out of your kitchen?

What is the relationship b/w your kitchen & the rest of your home?

Where is the family entrance in/out of your home (i.e., most used & where groceries are brought in)?

Is that the refrigerator in the upper half? If so, your island is going to be somewhat of a "barrier island" b/w the refrigerator and the range...it's exacerbated by the fact that the refrigerator is "deeper" into the kitchen.

Additionally, your island isn't really oriented in a way that's useful for prepping (and cooking). Can it be turned 90 degrees?

What is that opening on the right? Is it an opening + door or just a large opening? It's difficult to tell what that is...

What is to the right of the range (opposite wall from sink)?

Do you really have to decide today?? At this point, I would see about postponing your final order so you can work out the design. Your instincts are correct...there are problems with this layout, but I think they can be fixed give a few days to work on it here with us....

Marry in haste, repent in leisure. :) You're no where near ready to order cabinets. Any "savings" that you might be trying to rush into would be offset by the expense of regret down the line.

YOu'll probably only do this once, maybe twice, in your whole life. Take your time and do this right.

Thanks for the comments - Just for clarification, the entrance to the kitchen from the rest of the house (and where I would bring my groceries in) is the large opening on the right of the picture. The refrigerator is just above it.
The opening on the top is to my dining room.
On the other side of the peninsula (to the left) is a breakfast room which opens to a family room. Which is basically to the left of the dining room. (if that makes sense)
The island cant be rotated 90 degrees, there just isn't enough floorspace.
You're right, I don't have to 100 % decide today, I'm being pushed by the contractor because they need to know where to run the pipes, etc. The room is gutted to studs and I'm anxious to order the cabinets, and they are anxious to keep things moving to get their $$.

Gutted to the studs is a bad time to check your layout or decide on cabinets, but you've probably figured that out now. We still can't tell enough to help you very much and this isn't likely to happen in a few hours. Maybe you should give the guys a day off unless there are other things to work on and at least take the weekend to deal with your kitchen. Either that or live with it.

Your fridge seems far away from your sink and cooking area. How wide is the opening where you would bring your groceries through? Can you claim any of that space?

Do you really need an island?

Interesting. I thought gutted to the studs was when to do it because that is when they can re-run the plumbing and electrics. If I decide after, its too late. I guess before its gutted to the studs? Before it was gutted I thought I had a pretty good idea on what I wanted.

Do I really need an island? no. Do I want one? Yes.

I thought gutted to the studs was when to do it because that is when they can re-run the plumbing and electrics. If I decide after, its too late. I guess before its gutted to the studs?

None of us want to hurt your feelings, and it's too late to change the course now, but to explain: It's better to have the layout absolutely decided before you bring in the workers, so that you know what you want to gut, what you want to leave, what you want to add, etc., and so that they can get right into doing the changes you need. Anything you have done before the layout is planned might limit your options. They want to get your job finished before moving on to the next, and it'd be in your best interest, too, in most cases...for continuity and time efficiency.

Before it was gutted I thought I had a pretty good idea on what I wanted.

So is this the plan you thought you liked, or is it not working as you had imagined? I know from experience that ideas that seem so great in our heads don't always work when we get to drawing everything to scale and can look at all the pluses and minuses. A lot of us worked on our plans for months and some get into years to get them 'just right,' which is why were pretty much taken aback by the need for a decision right away.

But try to hang in there and get it how you want it. Like Live_Wire_Oak said, it's likely not an opportunity you'll have again very soon.

Could we see more of the house around your kitchen? I'm confused about how that opening works going off to the right. Could you do without the cabinet that is to the right of the stove/faces the sink run? If you just extended the cabinets and counter straight there, you might have room for the fridge or more room for the island? Not sure from what I can see...