Put french doors all around the dining so it can open up, U-shaped island coming toward living with built in booth seating, make area behind cabinets a hidden pantry...I could definitely work with this layout!
Just looks cozy! (But Id replace the crystal chandeliers with drum shade chandeliers for a more modern look,)
Couch but I'd add a sturdy wooden table for dark contrast
Freshen up your home: Where to focus your decorating dollars