I think a comfortable distance between the island and the counter is around 42". It seems that you have only 30" between your cook top and the counter. I might be a little too tight. The wall between the entrance and the kitchen could be 4' long instead of 6', you would then be able to move the island a foot which would give you more room between the cook top and the island. Could you switch the location of the toilet and vanity in your dad's bathroom so your enter facing a vanity instead of a toilet which is a lot nicer.

First, I think rearranging your furniture and getting the furniture off the walls and float them in the living space would look nice. I'd nail down the arrangement before selecting new rugs. Where the chandelier is, try floating your sitting area (with the coffee table) below the chandelier and angle the current area rug. It's okay (and looks quite cozy and open) to have furniture floating and be able to wall around the furniture. You could have another seating area where the arrangement is now. Oh...yes, your mustard walls can work as is. Let's start with the layout first. :)

acc to ur kitchen cabinet pic, I would request u to get stone ( kadapa ) vertical base frame and on top before granite fitting and then wooden panel can be done for drawers n shelves. this will eliminate wood to get wet and start to fall apart. looking forward to modular version need to know it last few years only. wherever water is concerned only wooden panels won't work for longer n steady use. for counter tables or side working space that will work but not where the sink will be placed.

that is what i have added if you can see the pic above.. want some suggestions on partition that i can use between dining and sitting