Is it one true step down, or is it an awkward sized step? I'd remove the railing if it's a normal step that is not going to cause people to trip or fall. I have a step down into my living room - it's fine. No one has fallen yet. :)

It’s a 4 inch step

It looks like a playpen.😬

Anywho, how much effort are you willing to put towards a solution (and by effort I mean cash)? What bothers you most about the playpen? Is it cosmetics only or does it not function well for you?

I don’t mind the actual separation. I HATE how it dates the rooms. The whole house is getting a face lift. Cash and effort aren’t an issue. We’re up for just about anything.

I‘ve considered that and would love to. But it’s outside our DIY capabilities.

Are the ceiling heights the same? I would raise the height of the floor in the sun room to match the kitchen/dining. Or add a pony wall (along the straight edge of the original dining area, not octagonal shape), get rid of your dining table, and add seating to the island.

IMO either raise the floor in the sunroom or build a pony wall with the step down still available on that angled corner or at least change the railing to a meta and glass one that is not such an eyesore.I see some real issues with the kitchen floor so attending to that might be agood time to raise the floor in the sunroom

All of the flooring is being replaced. The kitchen tile has already been removed. There are some cracks in the slab which is common and we will add self floating concrete when it’s time to install the floor. Sunroom and family room floors need to be removed still. It will be LVP throughout. We won’t raise height of floor in sunroom so it’ll need to be either a new type of wall separating the rooms or removing it completely. The step is 4in so it’s not a ”true” step down.

We had a sunken area like that and had it raised when we did a renovation, 100% worth it and not very expensive in relation to the whole reno. Why isn't that an option?

Since you are replacing the floors anyhow raising the slab is the best option. Best roi because everyone finds these transitions tricky especially when they are just 4” (just enough to be a trip hazard not enough to add any real architectural interest).

Another option might simply be to get rid of the bayed portion of the breakfast nook. Square it off level with the two posts on opposite walls. And then, perhaps, construct a bookshelf across the width of the nook, facing the sunroom. You could place a bench for seating on the kitchen side of it. It would eliminate the need for a railing, preserve the idea of a nook for the kitchen, and provide a functional barrier (book case) between the rooms without ruining the view.

We don’t want to raise the floors because of this exterior door. Moving it up with all the extra drywall work and fixing the deck and stairs is more than we want to do. Were trying to find a way to update the existing railing.

I’d take down the railing. Then extend the line/step that is parallel with the windowed exterior wall all the way to the windowless wall that the desk is on. Then you’re just lifting the floor in a small triangular area, you don’t run into issues with the exterior door, and you get something that I think would be more functional and appealing.

Just to clarify. You said, "Cash and effort aren’t an issue. We’re up for just about anything." That's why you are getting so many answers pointing you to the best option - to raise the floor. If you only want to change the railing, then you should consider a pony or full wall.