Oh good, this is exactly why I have returned to gardenweb -- we are still in the process; we have only about 8 ft of wall (and no opposing bar or peninsula). We chose to put in an 18" dw and an undercounter fridge/freezer (with ice maker). I wanted a single dw drawer at first, but the saleslady scared me off. I have a toaster oven that I might keep downstairs, and am not planning on buying a microwave for the space unless we absolutely need it instead. I thought a single induction burner would be great, since it doesn't get hot. Decided to forgo that because of limited counter space, and I will probably get a portable induction unit for times when we need it. We will have a full-size freezer and small wine refrigerator in a storage room, as well. Oh, and a portable icemaker. My favorite part (I hope it works) is that directly on the other side of the bar is storage where we plan to install a keg fridge and will tap it through the wall over the bar sink, next to the water faucet. Location might be a challenge; it will be tucked into the back corner of the room, so I'm a little worried about flow, but all things considered I think it was the best place. Look forward to seeing what others are doing/have done, and will update as we progress.

@rantontoo - Blocking this window doesn't violate any NYC code that I am aware of. Given that the apt is on the 14th floor and the windows start 25 inches from the floor and are 6 feet tall, blocking that window actually gives a feeling of safety. I am amazed that NYC allows a window like that to fully open. @nosoccermom - Your first pic is exactly what I was considering. The window area is very recessed. I don't have the measurements but the building required additional wall build out to provide additional wall insulation. The window is probably recessed 4 " plus probably another 2" for insulation

Careful - the pictures you are sharing have massive amounts of space. I'm not sure how well this will work with the space you have. If you are asking which looks better and are 100% sold on the aesthetics and functionality then I would opt for counter height. If you are not 100% sold post some pictures of the whole area and a floorplan. Let us know if this is supposed to be additional seating or your only dining table. Let us know what types of activities you expect to use the space for (kids doing homework, baking, eating, building puzzles). You also have to consider the people who will be sitting here. Are your parents/grandparents going to be eating at the counter - are they able to comfortably use a counter height stool. Do you have small children or are you planning on having children? Kids may have difficulty with counter height stools. Another consideration is resale. Doing something terribly unique may not be to the taste of potential buyers. Another option is to get a table that is the size and shape you want with a granite top that matches the kitchen. You can place it next to the cabinets or move it somewhere else if you find that you don't like the way it works up against the cabinets.

I would leave the pony wall due to there really is not that much room for seating as is. When people seated they will be out in the walkway already at bar heigth with stools. Plus, there's a lot of useful electrical sockets within the pony wall above cabinet heigth. If lose pony wall, putting electric in cabinets, will lose valuable storage depth within cabinets. What I would do now is replace the backsplash. The countertop is ok, imho. Countertop will look so much better with a brighter less pattern backsplash. Suggest moving in & seeing how well the kitchen layout feels while using for a few months at least. They may like the L shape as is. Make sure they love the cabinet color & style & they all are in great shape,too. Then & only then would I invest $$$ into new countertop. If they want to keep a Lshape kitchen all one level with more leg room then shift peninsula cabinets 12" or so closer to stove, but that's a lot of work. Plus, kitchen will get smaller, but seating would be better. Hopefully there is flooring under cabinets or enough left over. Maybe some can be taken out of closet or can find exact flooring match. Pros & cons to changing layouts is common. They may not like the layout after using. Then save up for a new layout then remove pony wall. They may want to consider getting rid of the L shape layout & get an island instead. Hope that helps. Nice of you to help your niece :)