I have zero skills in kitchen design but I think you have plenty of room to do all kinds of wonderful things! Hopefully me responding will bump you up!

Moving the peninsula to an island will require moving plumbing and electrical - which may mean ripping into the floor, and patching the area where the peninsula is. One option is to add a small island for additional prep space and a bit of seating. I have a small Amish made island that seats two comfortably and is very sturdy, but if I need to move it I can. You would need to place a non built-in island such that you can get around it comfortably - 42" or more is good, though I cheat a little on one side of mine because it is not a major walkway.

Your budget will affect what you do. You don't have to do anything - you have a nice kitchen:)

With a large budget you can rework anything - new cabinets and the works.

A smaller budget - keep the present layout and make some changes. If this was my kitchen, I would probably change out the countertop and backsplash to a lighter color - but I hate to waste good materials, so I would have to think about that. I have a farm sink now and I don't think I can ever not have one, so I would put one in - but that is not everyone's style.

I actually did those changes to my wood kitchen and pics are in my "my pics" idea book. I doubt it is your style - but you can see a lighter countertop and backsplash, the Kohler Whitehaven farm sink which can be installed on a standard sink base, and my small island.

You can paint, but you don't have too. If the cabinets are maple, they will paint up well. If oak, the texture of the grain will show through - bothers some but not others. A professional paint job can be expensive, but much less than new cabinets. Do keep in mind a paint job will not have as durable a surface as a factory finish. If you paint, consider white. Gray, while popular doesn't always work well with warm toned woods like in your flooring and your warm toned countertop.

I think the experts will want to see a floor plan with measurements. What's behind the angled area where the oven is and could that be reclaimed for the kitchen?

Then the question becomes how much do you want to spend? New floors? New appliances? Is the house on a slab foundation (more expensive to get water and sewer connection out to the island)?

Thank you, everyone, for taking a look. :) I'll try to answer all of your inquiries to help with the advice. I'm attaching a photo of the room on the other side of the diagonal wall. If you shoot through the small door in the kitchen you hit the dining room. If you go left it's the living room. I'm probably going to leave the diagonal wall as it makes the living room less boxy.

I've swapped all the flooring to wood-look, hand-scraped tile. I wanted hardwood but wanted bullet proof tile for my dog. The picture shows the installation. I haven't finished the kitchen floor but all of the other rooms are done. I'm adding 4" baseboard molding and painting it Farrow and Ball's All White. I'm looking for a beach, light blue with depth for the kitchen/family room.

The cabinets are maple and in good shape. It makes it hard to donate/toss them. The family that had the house before me took the refrigerator and the microwave did not work so I purchased Kitchenaid counter-depth appliance in stainless. My Mom felt the built in oven was too small and so I purchased a down draft oven to replace the cook top. I already have to do some electrical there to move the extra wattage. My Dad is an electrical engineer so he can help with that. I would probably put the sink in the island and so I would have to move the plumbing. The good news is that I can almost stand up in the crawl space so hopefully that will make it a little easier. Because of the changes I'm already going to have to replace some of the cabinets...

The granite. It's kind of pink/salmon with black and it is on every cabinet surface throughout the house. :0 I would like to swap this with Carrera marble and tile the black splash. I'm hoping the original granite can also be donated. I really want a timeless classic look.

I priced inset cabinets (including the island) I think through the cabinet joint and they came in at around $15k. I think they were MDF and I really wanted wood. I haven't decided on a sink. I was concerned that farmhouse sinks were trendy but they seem to be staying around. :) The house theme is modern cape cod. So for the island option it would probably cost $22k. I priced cabinets at Home Depot (non-inset) and they came in around $5k. So less expensive cabinets would bring me in at $12k.

If I leave the layout, paint the cabinets, order the replacement ones I need, swap the counter top and backsplash it would probably be around $7k. It's a pretty big difference in dollars.

I also don't know if at some point if I would rent the house out. I don't know how bad a kitchen would take a hit.

That's about it for now. Thank you again and please let me know if you have any other suggestions. :)