I had this exact same issue with a client of mine recently. Same layout and all.

We ended up removing the cabinets and building a hutch-esque furniture piece between the dining window and kitchen entrance. It still offered storage space without being so obtrusive.

In your situation, the uppers and pantry alone seem odd. Those for sure should be removed.

Thank you - that is exactly what I was thinking about doing...put a nice pantry type piece between the door and window.

Open them up and let's see how much storage you'll lose by removing them. If clutter results from a storage issue, removing them may not be much help for you. Better cabinets and hidden stuff, than open space full of clutter because you've lost the storage space. Have you considered paint and a new counter that extends into the living area where folks could to sit for a snack, drink or conversation with those in the kitchen?

I have already started de-cluttering the inside of the cabinets and it turns out most of it was just holding junk that needed to be thrown out. I think a pantry will hold the essentials. The counter as it is now extends into the living area a little, but the space is small enough there is room for a table or bar chairs, but not both. So the extra counter ends up being wasted space. I feel like I want to remove the bar, I just hesitate because it's actual real wood and not particle board.

I think I would just remove the upper cabinets and leave the bar....it will open up your space and I don't think you would miss the storage. I think I would leave the little pantry type cabinet on the wall end of your bar....put a top on it and use it for a pretty....plant, statue, vase or etc.

Removing the uppers will still leave the broom closet on the right. Have you figured out your way around that? Whats the plan for the floors once you remove the cabinets? If you're getting new floors anyway, then removing the broom closet and shoving the lower cabs to the wall will open the passage between rooms and your countertop won't be an issue. With the uppers gone, I think it will feel sufficiently open to you.

I don't think I will leave part of it... it either all stays or all goes. I'm now leaning toward - it all goes. I'll have to have the floor fixed with the wood going a little further into the kitchen area.

It seems like if you don't use it or need it then removing it would be the best solution.

Marylut - the rest of the kitchen is to the right of the doors. That's part of what bothers me with the bar - it's in an odd place. The doors cut the kitchen in half.

remove the top 4 cupboards and the valances. sorry, they are dated.