Wright, I'm finding I'm guessing way too much what the context might be. Is the driveway running along outside the basement stairs, or does the dining bay look out on it? Is there garden outside that back door or garbage cans? Where are the sunshine and views to be treasured and used? Is the bay to the floor or does it stop short? Is there a relatively spacious living room that could easily provide space for dining for 2-6? Is the living room so small that it really needs the open dining area shown to keep it from feelling cramped? Could you shift the door to the basement to the bottom of the stairs and open the stairwell at the kitchen level to open up the space visually? Would that be a bad idea because you never go down there if you can possibly avoid it? Just imagining in lieu of a real picture that: You have a pretty back yard outside that back door, do use the basement enough to make opening up that wall a less than horrible prospect, and the living room would be pleasant and attractive without the dining area: In that situation I'm imagining shifting the kitchen to the wider living room side in a precision engineered U. Dining for two by a glass back door, and maybe a pretty window added to make it particularly to sit there. Perhaps the bay remounted on the back wall. Open banister to stair well on left, art, mirrors, whatever displayed on the wall beyond, traffic flowing unimpeded along the left from back door to living room. BTW, DH wanted to catch tarpon, so I'm in Florida right now in an old mobile home juust under 600 square feet, but the layout is so excellent I'm constantly amazed at how large it lives. Except the kitchen. It was designed for an unaugmented area and its 7x10 was supposed to hold the dining area too. I fantasize about what some tweaking within its footprint could do for it. Someday maybe--if a storm doesn't wash it out into the estuary first.

Here is a really quick sketch of a what kind of kitchen adding that space would get you: (The counter on the window wall is 30" deep. The counter on the range wall is standard 25" deep.) You now have a nice wide counter (and deep!) between the sink and range. That's the best location in a kitchen for prepping, and now you have a great big counter right there with a window over it to make it extra pleasant to work there. There's also a wide counter to the right of the sink for clean-up (loading/unloading the dishes) or snacking (using the dishes and the microwave) without disturbing the cook working at the primary prep counter. The counter to the right of the sink could also be used by a second cook. Here's a terrible mock-up of how much more open your kitchen would feel compared to the current plan:

Can the loveseat by the front door replace the chair, creating an L shaped seating area? If you can move the coffee table in front of the other loveseat, I wonder if you'll have a clear pathway from the front door to the closet to the hall (?) door.

The pics came through now. Both sets. Seems like they get stuck somewhere in cyberspace sometimes and take a while to show up. It is very hard to see the layout and possibilities available to you with all the stuff around. Spend time in removing the clutter first. Remove it from everywhere including all the horizontal and vertical surfaces. Once that is done, it will be easier to see where your furniture should go to maximize the breezes.