I would put a cherry wood overmantel, and then a narrow length of trim down the left side of the fireplace, and cap the entire width with the same crown moulding at the same height that the cabinet is now, so that it looks like one total piece with the fireplace as a part of the whole built in. I would not paint anything, and I would leave the arch as it is over the fireplace - it adds some interest and breaks up all the rectangles in the area. I would take the clock down and instead mount a decorative dark iron piece there that compliments the hardware on the cabinet. I would not rely on drapery to try and balance the area - it won't have the same visual weight even if you could come close to the color. For sure I would pull the couch on the left into the seating area, and get an area rug to define that part of the space so that the eye is centered on the cabinet/fireplace part of the wall. If one of the seating pieces is wider, I would have that one be the one facing the fireplace. I am sure you have yet to add end tables and lamps, since you only have task lighting there at the moment, but I would wait to decide on the end tables until you have the seating in place. The overall feel of the space is fresh and clean, and the colors work well. What are you planning for an accent color?

I know what you are going through with the fridge. I had a similar problem with mine. Ours was only a year old so I didn't want to replace it with a counter depth - plus the CD are so expensive. We ended up building out a step-in pantry and hid it next to it. I like your plan 1 best. Unless you can hide the fridge better in plan 2 such as recessing it into the bathroom, I don't think you'll want to see it stick out so much from the LR. The fridge may be farther than you would like from the cooktop in plan 3. In plan 1, It looks like you would have 3' between cooktop and fridge. This is not bad and you would probably find yourself prepping closer to the sink anyway. I like the island idea. I think you could leave your sink where it is if plumbing would be an issue in the island. The island would give you a great work surface right across from your cooktop and fridge and not too far from your pantry. You can attach a table height seating area behind it that would provide seating on three sides. (Like butting up a table to the backside of the island to make a "T" shape). Houzz will have some examples (sorry, I'm not good with links.) BTW, I had that same vinyl floor in my last house. :)

Grey and Walter Ltd., Are you suggesting I post pieces I really like right here? beckysharp, (still my favorite name) I understand what you are saying. I still love these timeless pieces I have because they were not designed really but were functional in a day in which solid wood was hand hewn and actual metal smiths forged the amazing locks and hinges. I still adore my hand made rugs. Grey and Walter Thank you for your input. I agree with you absolutely. I have been living with over scale in my small 50s 1/2 story for too long. Now that I am putting in an addition, for the first time, I do not have guidance. In my area (everyone in my upscale area has either torn down houses like mine or put on additions) and the designers I trust are busier than the time frame I have. As I speak they are framing the addition and want a kitchen and master bathroom plan when I do not have a designer to guide me. I completely understand your tongue in cheek comment about the "Road to Hell." One without guidance can make costly mistakes. I am taking down all of the walls so the concept has to flow. Then I decided that if I delineated spaces with partial walls, I would have more room for my art. I wasn't thrilled with my fiance's table at first because he has it in a poorly decorated home, period. He picked pieces because the black frame of a round glass piece matched an art fair acquisition. He collected Lladro, swarovski, and everything was in plastic "showcases" nailed here and there on walls with no rhyme or reason. I am not pointing fingers, but his wife just didn't care about such thing. The table was lost among so many design styles I couldn't see it anywhere, least of all among my rustic, French country pieces. Yet, he seems attached to it. I thought that if I put a partial wall deliniating the new family room from the the dining room, I could use the credenza which goes with the table and keep the red blown murino glass chandelier and that would be the end of the mid century modern. On the other side of the "wall" I could put my rustic many drawers piece and his "can't live without" television over it. I could use the dark wood "coffee" table which was actually used in the turn of the century for bread. It is so cool. I left wall space between two windows for my two large multi colored abstract. This way one would not see the table and credenza, which, to me, would fight with my transitional eclectic pieces that somehow go together. I am incorporating at least one of my 1800s armoires in the kitchen and using it as a pantry. I found someone who can reconfigure it. I don't mind because it isn't a museum piece and was already reconfigured to house a LARGE television in my first house when the televisions were giant. I like the idea of using the two tall red velvet chairs with arms on either side of the table. I do love my antique French country dining room table which is parquet inlay doesn't have leaves but pulls out from both side to accommodate more people. It has curved legs and is nothing like the mid century lines of the table and credenza. Well, I am going to post pictures of my favorite things here when I figure how to upload things. Ellie

I like the new sofa position. It doesn't block the view of the trees or sky, and when you're sitting on the sofa the sun comes over your shoulder, making it a nice place to read because your page is well lit. Or lie on the sofa and look up into the sky and trees. I'd move the 2 chairs so they face the fireplace. That opens up the room at the steps and I think it makes it more inviting. Your furniture looks to be good quality. Maybe washable slipcovers to accommodate your dogs, instead of buying new? (Reduce, reuse, recycle.)