jacquipru: I kind of like it without the lamp. Do you need the lamp there for ambient lighting? If so, then the blue/silver shade for sure. My family would love for me to give advice on other matters. Keeps me out of their hair. HA When you start the other discussion, be sure to include lots of pictures, and include information like "I need to work with all the furniture, except for _________." And what kind of budget you are on. (Champagne vs beer!) You'll get TONS of ideas, but if you aren't working (sorry you are sick) and need cost-effective ideas and products, leaving it open ended might not be as on point and helpful as it could be. It's also helpful to generally indicate your location if you are comfortable. That helps people develop ideas based on what stores/vendors may be available to you. :)

squeakerd - it is really hard to get a perspective on the whole area but if this is part of a much larger area then I feel you need to first decide just what you want as the end result. Do you just want your entire area to be one open plan or do you want to break it down into visually defined areas within the open plan. As you have the area now, I don't feel any cohesiveness between your table and the sideboard, I think I would move the sideboard to the end wall, it looks more like it would belong there, even just by the shape of the room. Definitely a larger rug will define the space better - just be careful of any trip hazard with the door nearby - but before you decide on the rug, consider window dressings and whether you want things plain or introduce some bold patterns and what colours look best in the area. Artwork can go where your sideboard is now, but again think colours and impact of design on the whole area. It is all very well to build a room around one piece, but you need to look at the impact that piece will have on other items and what limitations it could cause. I would suggest you set aside some serious time to look through photos on Houzz, especially if you can find areas similar to yours, till you find what appeals to you, put the photos into your ideas book and use that to build your room. I have found this invaluable in the past and it has saved me many an expensive mistake.

Not keen on tiles ... prefer a smooth surface with no grout lines to try and keep clean

I have your setup #1 and it works well, we do drip a bit of water on the floor between sink and dishwasher, but you learn not to!! Also it gives a full clear bench on the peninsular for eating, setting out, or working or whatever. Your kitchen is slightly narrower, from memory ours is 1.6M not 1.3 as you have yours, Our peninsular has a circular end which has actually proved very beneficial for sitting round, and seats up to 5, meaning you are not sitting in a long line, but facing each other round the end, - I love it, it is a real gathering point. The outer side of the peninsular curves in to the centre, then flows out to make the circular ending, so its not protruding into the kitchen but into the other side, sorry I don't think I can add a sketch to this.