We could as a sunken coffee nook lol this. We’d encroach into the unfinished space but only a couple of feet.
This seems like what you wanted. Floor to ceiling cabinets and colored cabinets
If we do more cabinets along the wall, I would prefer to do a full size beverage fridge like this
Do you want a built in wine bottle cabinet?
Do you want it to look like the kitchen? I think it’s too much, your call
In the back wall, tv is a must. Do we want cabinets or just small shelves and an accent wall?
What if we do a long counter and cabinets below on the wall of the exterior of the house?
Gingy,do you want a small wall from the bar to the theater for your barn door?