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Configure open concept floor plan around tray ceilings?

We are reconfiguring our floor plan to remove two large interior walls (shown in red) and create an open concept living room and kitchen space. The original living room is the only area that has a tray ceiling (shown in blue). We are feeling very constrained by the ceiling and feel we need to keep the living space confined to the area under the tray. How noticeable would it be if we didn't?? Ideally we'd like to expand the the kitchen area down into the sunroom and a bit into the living room as well, with a large island. We also definitely want to combine the living room/sunroom into one big living space for relaxing/watching TV, but are having trouble coming up with a good arrangement. Please help!!


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