We did the exact same thing as you are about to do. The wall behind the fridge came down, kitchen extended about 12" into dining room, small 5' penninsula to connect the 2 rooms. The plan was to lay pergo floor and I switched to tile in the middle of the reno because matching the old wood floors in the house was too difficult. I will tell you this, 5' penninsula is very small, but I like the larger opening. The GC did a good job with the threshold,and the same threshold is at the back door now too. As you can see, my island also overlaps both rooms, and I tied the 2 rooms together with the glass cabinet above the penninsula. I have to be honest, in my "heart of hearts" is the desire for wood flooring like the rest of my house. I am getting used to the tile (it's pretty, but really too light), but I do wish I had taken the time early on to budget for the wood. Oh well, maybe someday....!! You are gonna LOVE seeing that wall come down, and the space open up -- You will be Thrilled!! Wall behind this refridgerator came down - AMAZING!!!! ="http://s781.photobucket.com/albums/yy95/tracy02360/Sears%20and%20Roebuck%201925%20Bungalow%20Home/?action=viewät=kitchenreno006.jpg" target="_blank"> See the glass cabinet and the 2 floors connect? Used to be a wall right there!!!! GC just measured and cut!!!

I agree--marble threshold would look great! Here's a blog post about a house around the same age as yours and what they did.

We had a similar issue in our primary bathroom. The tile floor is higher than the surrounding wood floor from the hydronic radiant heating under our tile. Our contractor installed a Schluter metal trim piece and then cut a piece of wood to ease the transition between the tile and wood floor. Without the wood transition I was afraid we'd break our toes if we hit the metal trim in the middle of the night!

Do you use the entry way, or is it mostly for guests? If it is mostly for guests, you might continue the wood as it will not get the kind of wear and tear, snowy boots and shoes, that a regular entry will get. But does this become a collection area for boots, shoes, etc.? Then I would say no to wood. Perhaps slate? Presealed before installation. I have a slate floor in my back entrance area. It cleans up well and the sale residue washes off. (Plus, you can see it when it collects!). Your home is lovely!