Famous English decorator Rita Konig advocates for what she calls a "cook in dining room" - it's a combined kitchen and dining space but instead of an island, there is a dining table, and no sepate eating area. I think it works fabulously in a traditional home, if done right, and could work for a small space. How practical that is depends on your lifestyle.

If you don't like that idea, I'd consider a built in banquette at one end of the room, which will save you a ton of space. You might still not have room for an island, but it should help you expand the kitchen into the dining room while creating a less claustrophobic feel. I personally love banquettes.

In general I think looking at English design publications like House & Garden UK will be useful because their kitchens tend to be much smaller than American kitchens, so come up with creative uses of space.

Photos of "cook in dining rooms":

Your question needs more info to work with….sketch of floor plan…showing how it relates to adjoining rooms…any windows…outer walls…existing plumbing…electrical…to get any advice that would work in your space

Show a 2D floor plan with measurements.

I just did this! It's not done yet ( awaiting counter and floors ) but I have been absolutely shocked at how much of a difference it has made. The kitchen was 11x13 and dining room 11x10. (I am documenting on instagram as well - https://www.instagram.com/gretchens_kitchen/

Mine isn't a cape, but a small 50s traditional house.

Removing the wall let us stretch the cabinetry and that pushed the range down the wall a bit, making it a "cook-in dining room" as mentioned above - which isn't a term I'd heard! I've been saying that basically we are making a bigger eat-in kitchen. vs two discrete spaces. I plan on making a full post in a few weeks after the floors and fridge are in.