I wanted to be supportive here of kaismoms opin. I feel like sitting down for dinner requires a transition in space. I like the walk across the space that means I'm away from the prep area. It makes me feel like now we are ready to relax and enjoy dinner! Eating at an island has always made me feel rushed and uncomfortable. With a table, someone can get up and go clean/etc in the kitchen area if they want or need to without disturbing the people at the table. With only an island you are sitting there watching someone clean while trying to enjoy your meal. My grandmother (I'm early 30's)always stood at the bar counter to eat her food when I was growing up. She never would QUITE make the transition to actually sitting down and enjoying the meal. It was always, go ahead without me I just want to clean up this last thing... and then getting things for those seated and then beginning the cleaning up. I've always thought that if we could have gotten the kitchen table just another few feet away from that bar how much different her life might have been. Looking at each other is important to me for a meal to really allow us to talk about our days and what's happening with us. If we go to a restaurant I never sit at the bar style areas. I always want to be on one side of a booth with the DH on the other so we can hold hands and do dorky stuff like that. I like to arue with him as he reads my paper upside down and steal his clean fork when I've dropped mine. I don't feel like these things would happen if we were sitting shoulder to shoulder instead of face to face. I don't like island seating as a general rule but I can't stand it as the only dining space.

I'm afraid I ran out of time to finish this, but perhaps it will help someone else who wants to take a crack at the laundry/powder room/mudroom area. I moved the existing wall between living and family room over two feet and then just shuffled which room is used as what without really changing much structurally. The one other big thing of note is that I changed the bay window to a door: https://www.google.com/search?q=bay+window+door&source=lnms&tbm=isch&sa=X&ved=0ahUKEwj7h92z49fNAhVM4WMKHbvjCkMQ_AUICSgC&biw=1920&bih=979 This makes the backyard much more convenient to the kitchen for grilling, etc. Adding a back door between the kitchen and family room also means you no longer have to have a back door in the empty space in the upper right. With the new formal living room also able to act as an office, you also do not have to have an office in the upper right. (If you truly needed to, you could also make the 3x7 closet in the foyer a powder room, and then you wouldn't need to one in the upper right corner either. However, that'd require moving the bathroom plumbing quite a distance, which is expensive, and the location would then be rather more public and significantly more windowless, so I'd not do this.) Regardless, you have a lot of options to free up the upper right quadrant to simply be the mudroom/laundry room/powder room of your dreams. Another option -- if it is not important to you to keep the formal living room -- is to make what I'm calling here the "formal living or office" your mudroom/laundry/powder situation. You can move the garage entrance to open into that area, which would ultimately deposit your family into the foyer rather than into the kitchen or the family room or any other room. That creates a highly desirable situation where all your living spaces are dead ends and do not need to be arranged or designed to accommodate through-traffic. In addition, making the "formal living or office" your mudroom/laundry/powder room means the empty space in the upper right of this image free to become a downstairs master or guest suite, which would add a lot of value to the home and could still be used as an office.

Thank you. The island is not in front of the fridge, it is only in front of the pantry. And I really appreciate you mentioning the fridge door opening - the fridge I picked only needs clearance of 4 inches between it and the wall, so we put filler there. But this is a hot button for me as I spilled something in my rental fridge recently and had to swing the door way out in order to get the drawer out! Thank you!

NKBA guidelines recommend a minimum of 42" counter-to-counter for a one-person work aisle, 48" for two people. Your fridge door will stick out a few inches, handles a few more (your fridge appears to be a CD model), so I would make that aisle between the island and perimeter 48" counter-to-counter, which will also allow you to keep dishes in drawers across from the DW. You'll have at least 42" between the fridge and island. Would a m/l square island give you the seating you need, on two sides? You'll need 24" per seat for elbow space, and 15" leg space for the seating overhangs.