Kitchen needs a good work triangle with fridge close to the sink for ease of offloading and preparing refrigerated food items. I would use the longer wall on the right for upper and lower cabinet installation and the stove with nice surface areas right and left of the stove for setting down hot pots, etc. Could tap into the bath plumbing to add a pot filler at the stove. Put the fridge on the wall with the sink. Add a small table or rolling cart to the store room/pantry for setting down grocery bags to unload them. Leave the short wall empty, and you may have room for an island. Is that a breakfast area at the end of the kitchen? It could be part of the island. Are you going to use the dining space? Is that a fireplace just around the corner from the entry? Will you have a TV? Are those your 5 loveseats in the living room, or do you have other furniture to work with? Need more info and photos of any furniture you have that needs to be incorporated. Comment here and attach more pix.

Pictures please

So yes eliminate that section between living room and kitchen. Move your living room furniture forward closer to tv. Now you can have a separate dining space where living room furniture used to be. You may have room for a kitchen island with cooktop. Then sink where stove was and refrigerator where sink is now. Double wall oven where refrigerator used to be.

I can see a dresser area outside the bathroom in the floor plan and a separate wardrobe area as well. You can make an exclusive wardrobe and dresser area for your daughter just outside the bathroom. The wardrobe space can accomadate a long study table with wall mount bookshelf and a mix of open and closed storage. On the same wall you can make a sleek wardrobe for your son. Trundle beds are also quite in these days, you can place a trundle instead of a regular bed. Place the bed against the same wall as shown in the floor plan but tucked away in the corner. On the opposite wall you can get a nice kid friendly theme on the wall and create a small seating. Use all white furniture and add pops of colour through curtains and bedding