You have a great opportunity to go eclectic. So using very modern and colourful elements for the kitchen - modern storage cannisters, a vase, lights, toaster, even mixer, you start to introduce shocks of colour and shape that jar with the expectations in a traditional kitchen. In this image see how the chairs just add a touch of cheek to cheer up the kitchen...

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I would remove the East wall of the kitchen and extend the island to where the wall is now creating lots of counter seating. Then you can use the dinning room however you choose. I would also open up the walls around the mud room. It feels quit compartmentalized right now.

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