You have some good ideas but if you're going to sell soon and aren't planning on taking the soffit out, I would just do some minor changes and keep the cabinets (just add a couple cabinets). I wouldn't move the sink but just get a nice stainless steel sink and update faucet. I'd get a stainless stove vent. Remove the wall on the left of the refrigerator but then just do a small pull out pantry on the right of the refrigerator. And, put a cabinet above the refrigerator and make it look built in. A glass backsplash, can lights on the ceiling and pendants above the penninsula. I think a raised counter will make the kitchen/room feel smaller.

Looks like you have several things to consider in the layout. What the view out the window ? Do you really want to see more of whats outside? Cooking is always best on the outside wall to get it vented, island cooking is a last resort, downdraft dont work well at all and the island hood is typically obstructive. Looks like the wall should come out to open the space up. Best advice is to have a designer come to your home and see it in person. There are costs associated with every change and it is very difficult to judge just from photos.The design phase is the most important part of any kitchen remodel the builder is only going to install it as the plans layout. Find a great designer that makes house calls :)

I would suggest you take out the cabinet that is to the right of the stove and use it elsewhere in the house -- perhaps in the bathroom or dining room with a hutch above it. Then, I would suggest you have someone install a lazy susan cabinet in the corner between the sink counter and the stove, meaning you would move the stove down a bit and have a small cabinet/counter top to the right of the stove. I would suggest you have the cabinets refinished in white and then paint the walls a pastel you like. If you would prefer white walls, then add white-painted crown molding and paint the ceiling a light neutral blue, such as Sherwin Williams Niagara Falls Blue. Then, I would suggest you choose a favorite accent color and use this sparingly in accessories like towels, pot holders, small vases or floral arrangements, and a valence above the triple windows. For a genuine 1940s look, you might have white ceramic square tiles with a rectangular red border installed as a back splash behind and above the stove. If you are replacing counter tops, I would suggest a light color such as white with a beige or light grey vein or striation for some sort of pattern. You might be able to find the same color and design in floor tile OR opt for a wood floor as another poster suggested.

Thanks :) All very good points. We thought about having the cabinet doors put in for the fridge but we personally haven't found them to be too practical in the past. Ones we've used haven't seemed to seal so well. We are also planning to upgrade the fridge in the next couple if years. Good thinking about placement of the microwave too. We have a power pack range built into the wall cabinets so unfortunately we can't put the microwave above the cooktop. I like the idea of the appliance cupboard being turned into a corner cupboard, although I'm unsure if that would mean that you then couldn't easily access it from the other side of the bench..? I'm hoping our kids will sit at the breakfast bar and make their own toast etc while keeping out of the kitchen itself.... I also wonder if we should have the wall cabinets all in the same line or if we could drop the usable ones, on either side of the power pack, down further to give us more storage....? And (I promise this is my last dilemma!) does anyone have any ideas on whether to place the 1/4 sink to the left or the right of the main sink? Again it's one of those things that I'm going around in circles about....next to the prep area vs next to the dishwasher.....? ...... Ahhhh decisions, decisions ;-) Thanks again