In our first house we had one level, and W/D near the garage entry. Next and current house is 2-story with laundry room on 2nd floor, and I love it. But, it just depends on how you live and how you actually "do" your laundry. For us, by that time, our girls were school-aged. So I was not tending a baby and folding lots of little baby things. The upstairs is just great since the laundry is in the middle of the hall, with baths and BR's on either end, so all linens and clothes just go there. You can dash and get something from the dryer to put on, or a warm towel. I don't think it's as simple as "where you spend your time" with the exception of watching small children, but maybe more about how you attack the clean clothes, and whether you have bedrooms on 2 floors or all upstairs. Or maybe as pointed out, if you do 10 loads of laundry in one day, you then are having a real laundry project, like a cooking project, and tending it most of the day. So those habits and preferences will affect what works best. I spread my laundry loads throughout the week, and so tending 1 or 2 loads in a given evening overlaps with other trips up or down stairs to do other things. With the upstairs laundry, I bring a hamper to my room and fold clothes and towels and put them directly in the closets/drawers. I may use the bed to make piles of folded stuff. I listen to radio or talk with my husband or just, you know, think deep thoughts. (Girls (esp in past years) take hampers to room and who knows what they do then? Not my problem). There is room in the laundry to fold there, so I might do some towels there, but otherwise I don't, since I would then have to just stack stuff in hamper and bring back and dig out again. So, I prefer my current system to an off-the kitchen system in which I'd haul stuff upstairs or fold stuff on the sofa. I don't have a mudroom and wish I did. I think that definitely influences laundry gameplans, since then you have other advantages of the mudroom and how your organize the flow of clothes and stuff. If one or more family members have to deal with dirty work clothes/uniforms, or maybe just active kids and sports stuff, that can be an advantage if you are organizing the clothes and shoes off upon entry. I guess you have to put on a robe or something to come trouping through the living room after stripping? But for those who have less frequent "toxic" clothes, you could just have a drop-off hamper at the entry point. I think it's less universal than kitchen design, which while still very personal, has the somewhat universal issues of work triangles and door-openings and things for the basic layout, and then moves on to more preference-based issues for how and where you eat, do homework, watch TV.

Sorry, been away! Mark - we presently have the master at the front of the house. Only because there is a very small view from there. I am going to look critically at your image though and see if some of the adjustments are an improvement on what we have if we were to flip it over. I did discuss the idea of adjusting the stairs with my husband, and he didn't like the idea despite the square footage potential. Most houses around us are set up like the ones in our version. Not sure why... He adamantly did not like the visual of a run of stairs when entering the house. Oh well! :)

You are right there is not enogh space for an island but IMO not all kitchens need an island and some of the most functional kitchens are galley type layouts . If you go into the DR space at all the DR then becomes too small to function as a DR maybe think the other direction into the breakfast space since in a small house the need for 2 eating spaces is really not nessessary IMO. Iwould probably do an elongated U shap and then have the wall on the LR side all true pulloy pantries for storage eliminating the need for upper cabinets on that window wall with the range and hood between the windows for proper venting too If you post some pics of the exterior that will help with mud room ideas . I think I need a budget too.

Some will depend on what type/generation of Cape it is. If it was built as a 2 bedroom with open space above, and homeowner creep built 2 bedrooms upstairs, then the ceiling joists could be insufficient for floor joists. So decisions on sistering vs platform above may affect your existing ceiling or replacing an inadequate stair might tear up a lot. Other things like HVAC, plumbing, and posts should be designed with the existing 1st floor layout to minimize intrusion anyway. Electrical shouldn't be a big issue in tearing up the 1st floor. Keep in mind 5 years can easily turn to 10, AMHIK.