Is there separate sleeping accommodation here, or will this be sleeper sofa? I would float the sofa with its back to the kitchenette and use a small drop leaf table behind it for breakfast and for a game table. If a sleeper sofa isn't needed, consider a reversible chaise sofa to have flexibility if you decide to rearrange. Move TV farther down that wall, mounting it on an adjustable arm for best viewing. Be sure it is a glare free TV due to all the windows. You could also consider wall mounting it in the corner between the windows if you don't plan for drapes that would need the corner for a "stack back" when open. You could possibly have room for one or two swivel chairs opposite the sofa too. Here's a photo for the concept of the table behind the sofa. Jane bi-sectional by Gus Modern

@Beth Yes I like those blinds a lot in the last picture, and that couch is the color I planned to buy. Do you think curtains with these blinds are too much? I have curtains in my house, and our old house had blinds and curtains, and I really liked that look. We live in the city, and have lots of noisy (and nosy) neighbors... I love the roman blind over the sink look too... Since these windows are all in the same room (except for bedroom) should it be unified with the same base idea (like all have blinds, but some have curtains too?)

My house has windows more like this along the front, stretching almost from corner to corner and at the ceiling line to a sill height of about 66" or so. This is because my house is right on the sidewalk. It lets a lot of light in and they are high enough that there is privacy without any window covering (all you can see outside is the ceiling pretty much). And we have a great view of trees and skyline but not the cars parked right out front. A lot of people may think this does not look as nice as a full length window, but the neighboring houses with full length windows keep them fully covered almost all of the time for privacy.

I have schemed different scenarios - moving the kitchen to either wall, eliminating Dining, moving Laundry, reducing one bedroom to 9' - and none of them seem to support an island. You can do the math: 24" cabinet + 36" [yikes!] aisle + 24" [seating only] island = 7'-4 1/2". Your Living is 18'-6" one way and 17-9" the other, so subtract the 7'-4 1/2" and you are only left with about 11'. For a Living Room, you need a good 10' plus circulation (you do not want a couch backing to window). Especially since you have 2 bedrooms. I would even postulate you need a Dining table for 3-4 residents. I see why the architect has the placement of windows as they are, albeit without elevations showing the ADU sitting under your deck. For the tv, simply make the side window a transom for a tv below it. I would suggest going back to your competent architect and prioritize your criteria - a small ADU cannot be all for everything - and be willing to lose something - like a bedroom, if you really want that island and a cooking, viewing, and eating space is the priority.