My vanity has no drawers, so I have a tall cabinet with open shelves to one side and a smaller, vanity height cabinet with a door on the other side. I keep everythign in dedicated baskets on the shelves. All OTC meds go in one, Toothbrushes, toothpaste-all oral hygiene items go in another. One to hold lotions, cremes, anything you apply to your body. One holds hair related things that I don't use all the time-straightener, extra boxes of color. A smaller basket holds hair ties, clips etc. I have a large vessel my DD1 made in HS that stores hair brushes, combs, blow dryer, etc. It sits on the counter. Toothbrushes, toothpaste, etc are in a basket. I keep my make up and personal grooming things in an over the toilet cabinet. I store tubed items, pencils, brushes-anything with a longer handle in pretty highball glasses. Nail utensils are in another. Small, pretty baskets hold make up, manicure items, cotton balls...I have small containers for groups of like items. I hate having to dig to get to what I want, so if I group them by like items, it's easier to find. I keep my medications in a basket that I have near my chair in the family room-I take them with my morning coffee-but if you have some you take at night, keep a pretty basket in the bathroom. In the other bathroom (DH uses that one) I have decorative jars to hold/hide his contact lens stuff, grooming items and in the cabinet I keep plastic containers that hold first aid things, extra hair products, his personal grooming things-deodorant, after shave, etc. I really hate to see things out in the open, so generally the only things on the counters in the bathrooms are the soap dispensers.

cost of a new counter is about 80/square ft installed. Anything you do will be some new counters. 40-50 square feet in total, but you might be able to get away without replacing the entire countertop depending on where the seams are and the sizes of the pieces you have. Turn the peninsula 90 degrees and place it touching the empty side wall, 41-42 inches away from the countertop against the back wall and long side facing towards the living room. You would have to repair your floor where the downdraft, gas and electric come in through the slab. Looks like there is no downdraft? Maybe gas and electric come through the exterior wall instead of the slab. Remove the big window, close up that part of the wall, Install a venthood, electric, and gas from the exterior and reuse the existing cooktop. you might be able to rescue the counter above the peninsula by installing butcher block or something where the stove cutout was. If you are lucky you might be able to move the counter on the peninsula to the right side of the back wall. Eat your meals in the dining room This will be more than 5K (maybe less than 10k?) You would have a good work zone, a peninsula facing the living room that people can eat at and be served from close to the stove.

I think I would also move the TV to the 9'3" wall as Barnes Custom Builders suggested. I would then move your couch to the 5'11" wall (pulling it away from the wall so the vent can function). Then, I would flank the chunky chair to the left side of the couch. I would purchase a TV credenza and mount TV above. I would then fill the previous TV location with a credenza with a lamp and a mirror. I would also get a single large piece of artwork for the 11'9" wall. I would get rid of the bent wood chair as you suggested. Here's an option for a rug, credenza, media console, lamp and mirror... Moroccan Tribal Cross Section Rug Geome Sideboard Seno Media Cabinet Ripple Ceramic Table Lamp Wall Mirror Brass Hope this helps or inspires!

I would remove the cabinet and not put another in its place (maybe a tall plant instead); different artwork to coordinate with the dining space; and, agree that a bench would look great in front of the windows and it will be functional, too. A rug under the table (with coordinating runner in front of the bench) and roman blinds in the eating nook would tie the whole space together well...