I can't save your screen shot (?), so I did a quick estimation of the kitchen space, using as much of the existing layout as possible. I put the fridge near the dining nook, but that wall could be flipped, with the fridge next to the DR. That would keep the clean-up area completely separate from the prep/cooking areas, but the DW door would open partially against the end of the peninsula: Everything on the clean-up wall flipped: The black arrow is for corner storage that's accessed from the back of the cabinet. Or it could be accessed from the FR side, and since you have a table nearby, the peninsula could be extended over a run of cabinets, to increase storage and make up for the lost pantry and hanging cabs. I gave you a KW mixer. :) Back with one more--if the door to the formal DR could be moved to the hallway, the range wall could be extended, and a wide island with prep sink would work. Except for storage in the middle, drawers in the second run of cabinets in the island would have easy access from the ends. Optional upper cabs beside of range hood. (Contingent on the hood being vented as in the current kitchen.) If anyone else wants to borrow this plan to experiment, please feel free.

you really need to post the whole first floor layout and elevations to see window placement, overhangs etc. Also which direction is north and what climate are you in? Most folks here will not comment on isolated parts of a house because a house has to work as a whole and all parts need to be in relation to one another. While the layout looks fine as is if you only have windows on the ends it will make for a very dark home

I'd redo the living room layout in small spaces, sometimes the bigger you go the better you get..when comes to incorporating all kinds of storage so. I'd try to do some sort of a wall system incorporating your TV, books, working space even. whatever else you need to there on one wall..the longer one I guess, with no windows. sofa goes betwwen two windows, and the whole conversational shebang you need there..a chair, a coffee table//ottoman, a side table..angle the chair as on your scheme.. you'd be able to turn the TV a bit my guess is, for movie nights and all, if you'd feel the angle is still too wide between TV and you. dining area gets to be more floating (consoles/sofa tables look good behind sofas..dining tables are too high for that, you won't like neither dining nor sofa..and also food might fall onto sofa..would happen to me lol) I'd make it (a dining table)round probably..with a possibility of additional leaf-never hurts..but in any case, it'd go next to the kitchen(obviously)..approximately where currently window with curtains is. more defined dining area. that can still be maneuvered around tell us your style-and we can be more helpful with pointing out pieces/stores to look at as for decently priced..whatever your style is, always check vintage too. Takes time and patience but one is rewarded in the end as for your bedroom I personally love books in bedroom..I might go for lighter colors/same as future walls color in order to make shelves less obtrusive, more built in look don't forget lamps -floor ones, table ones etc. rug/s in living will help to define different areas that's my very general take nice apartment with all the challenges..Manhattan sounds exciting! love Mahhattan. Have fun putting your new place together PS you know website "Apartment Therapy"? they also have couple books published. Great sourse of inspiration for small spaces

Really either layout would work, they are basically mirrored images. But I guess I would reframe it this way... The kid/office drop area, I wouldn't do a built-in and I wouldn't want it near the dining table. It will get cluttered, and at some point the kids will outgrow the space and go to their rooms. Will it really be used for a home office space? Or just a catch all? Would rather it be in an area that could be reconfigured over time and taken over like in the seating area. Love the idea of doors to the outside, will you have a patio/ deck area? If not, please add.:-) If yes, the idea of the doors would be great to do one long deck along the run of the kitchen. Not sure what your outside landscaping is, but a grill area with seating is perfect off a kitchen. It would be a good time to think about the outside at the same time laying out the inside. Good luck!