Do you know if that wall supports any weight? That has to be answered before anything. My friend had some non-supporting walls shaved down and move a switch for around $1000.

Having a counter depth fridge will definitely make the space feel less crowded. Since you are so far into the project at this point, I don't know if I would change things, and just buy a standard fridge.

I'm not sure if the wall is supporting any weight. We are in a townhouse and above this wall is our loft. Good point.

Here's another shot from the outside with the new design.

If I could, I would cut the doorway back the 7". You do need to check if it supports something but I don't imagine that 7" would make much difference unless there is some kind of beam or something supported right at the doorway, (And I doubt it because there is an outlet right there, so there probably aren't a bunch of 2x4s put together to form a post that then has a notch cut in it for an outlet). That outlet will have to be shifted over, too.

Great advice, you just need to decide if you want to add another $1K

What about if we do decide to cut the 7" and install the counter depth fridge but years from now need a bigger fridge? Would the standard depth look bad with a 25" wall on the side?

Yes, probably not so good but I don't think a full depth fridge is a great look for that kitchen anyway; it would Loom.

Plus standard depth, refrigerator doors are only getting thicker. Replacing the same GE fridge with the exact same model will stick out another 1.5" from the old photo!

An option that may help is to recess the frig into the back wall. You can remove the drywall at the back of the frig alcove and reframe to allow for more depth. Up to 3-1/2" or so.

I'm not sure how that would help because we would still need to cut the wall with either depth option if we recess it back into the wall. Especially with the counter depth.

The trouble and expense aren't worth the effort. Leave it alone.

And you need to be able to get the door open.

If you decide to cut that wall back, go ahead and widen the whole doorway opening. You'll be amazed at how much better it looks/feels. Especially if two people can pass at the entry way.

One other aspect is resale. It would make a small kitchen look bigger but it would commit future owners to using a counter depth fridge. Great comments all but we're still undecided.

I wouldn't worry about what the future owners will be committed to buying in on down the line. If it looks great, it will be easier to sell. I can't imagine anyone thinking they don't want it because someday they'll be committed to a counter depth refer. If the wall isn't load bearing, also get a bid for taking it out completely and having a piece of wood (that matches the cabinets) added on that side instead of rebuilding the wall.

Here are some updated photos with the old fridge in the new kitchen. Seems like a no-brainer to cut the wall and go counter depth after seeing it in the space again.

I would...it fits, technically, but really dominates the space

One last question. If we cut the wall and decide to go back to a standard depth fridge, would it really look so much worse in seeing 7" of the side of the fridge than it does now?