Goals: 1. Open up the kitchen, because kitchen is so small and we have those cabinets over peninsula, it feels very closed off. 2. If possible provide more room to allow more people in the kitchen. 3. Add more storage/counter space.
We are a family of 5, we have 3 children school ages 7 to 12. We normally have a least 2 working in the kitchen. We do use the area for children doing homework while cooking. We entertain some, more informal. It is very difficult in our current setup. Swapping the two areas is the only idea I could come up with to add more space without adding on to the house . Due to space we will probably stick with a standard range with OTR MW/Hood . If anyone has others ideas please let me know. We probably would prefer wall oven but probably cannot make it work.
Questions
-Do DW drawers take up the same space as a standard DW?
-The window added in the new kitchen will have to be in the area of the old door. Does sink have to go by that window.
-I think the table will be tight in the space. Is 32 inches enough space from edge of table to the wall?
-We decided to put an island in? Do you think that is a better choice than putting in a peninsula (u-shape)?

I really appreciate your time in giving us feedback. Below is current layout and new layout design.

CurrentLayout

New Layout Design

New Layout Design picture

Details
Cabinets - custom. Painted using Cabinet Coat colored in White Dove by BM
Floors - red oak stained medium brown
Countertops - Absolute black granite on the perimeter, Monte Bello granite on the island
Backsplash - Walker Zanger Newport Seaweed subway
Door hardware - ORB cup pulls on the drawers, and ORB egg shaped knobs on the doors
Faucet - Kohler Vinnata...the smaller one (I can't remember the dimensions, but I believe its about 2" shorter than the large one)
Lighting - the 2 lights over the island are mini-chandeliers I got from Lighting Universe online
Fridge - Jenn Air counter depth
Range - 6 burner Viking
Oven - 30" GE Profile
Microwave - LG
Dishwasher - Asko

Thanks to everyone who shared their information. Overall, we are very pleased with it. There are a few things I'd do differently but they are pretty minor. If it wasn't for this site, I'm not sure it would have turned out as nice as it did.

Before pics: we moved the kitchen into the family room, the dining room into the kitchen, and the breakfast area into the dining room. (The living room turned into the family room, and the office will soon turn into the living room ... more to do around here.)So these photos are not exactly classic before/afters. (And it's a snowy day, so bright outside, not the best for pics. Oh well.)

Old kitchen

Corresponding view

Old family room:

Corresponding view

Old dining room (both visible walls are now gone)

Corresponding view

I was previously opposed to knocking out both walls, but I am glad we did. For the way we live, it works much better. Entertaining is a cinch now. Because the kitchen is vaulted but the other ceilings are low, it doesn't feel like a huge empty space (that's what I was worried about). And I liked my "other" house, just not the kitchen. It was awful.

I'll post details here, and more specific photos in a subsequent post.

-Cabinets-
Aspen Leaf Kitchens in Denver/Berthoud, CO; proprietary Primer White, BM Taos Taupe on island and butler's pantry, and custom-stained antique pine on breakfast hutch

-Appliances-
SubZero BI-36U fridge, pro handle
Wolf 48 DF range with 4 burners and double griddle
Viking 54 in. hood liner with heat lamps
Thermador DWHD64EP dishwashers
KitchenAid KBCO24RSBX three-zone beverage center
SubZero 700BCI refrigerator/freezer drawers
Sharp 0.8 cu ft microwave

-Counters-
Minas soapstone on perimeter cabinets and hutch
Calacatta gold marble on island and butler's pantry

-Hardware-
Restoration Hardware Gilmore cup pulls, Aubrey knobs and handle pulls, Clear Glass knobs in antique brass, and Season knobs and Hanson pulls in ORB

-Sinks-
Main: soapstone farm sink crafted by Terra Bella/Denver CO
Prep: Ticor S3650

-Faucets-
Main sink: Kohler HiRise bridge with sidespray
Prep sink: Kohler HiRise bar faucet

-Lighting-
Wilmette Clark pendants in ORB (breakfast nook)
Wilmette LaSalle wall sconces in antique brass (later photos)
Visual Comfort Classic Ring chandelier in AB (dining room)
Visual Comfort Four-Light Siena pendant in AB (butler's)

-Island stools-
Ballard Designs Dorchester counter stools in rubbed black (all other furniture and rugs previously owned)