How about moving a fridge to where a pantry is per you idea, then make the rest of the right hand side cabinet a full height cabinet all the way in, and move oven and microwave to this right hand side wall. You should have a bit more storage space. For a sink, you can opt for one big single bowl either a 500 or a 700. I have had one 700 bowl for a few weeks and really like its functionality over two bowls sink of similar footprint. Keeping breaky area is nice, perhaps free up the space below like in the above comment is a good compromise for visual aspect. you could also opt for a glass top to make it a bit less intrusive.

Different strokes for different folks, as they say. We have a butlers pantry, smallish, with a sink in it. The pantry has become effectively a walk-in pantry, with storage, a wine fridge and the toaster and microwave. It's very useful, but we almost never use the sink because there isn't enough practical counterspace and because, well, who wants to do dishes in a closet? We also have an island, with a single basin sink in it, and of course the dishwasher. That's where we do prep, and it works just fine for us. We can watch TV while pealing spuds or washing those dishes that don't go into the dishwasher. Even with the sink, there's still plenty of prep space, and we have a good work triangle between sink, oven on the wall directly behind it, and fridge, oven and pantry on the end wall. In practical terms, the arrangement works for us. When we entertain, we clean up and load the dishwasher as we go, dump the pots and pans in the butler's pantry, wipe off the bench, and we're good to go. And since it's only a single basin undermount sink, the look is clean enough for us.

From the photos you have provided, it looks like your kitchen space is quite cosy. To accommodate a island bench you mentioned before we would suggest a corner kitchen, keeping your pantry within the corner however making it built in with your cabinetry in the photo posted below. (Photo a idea for cabinet layout, different materials and style in accordance with your design). To make you design flow, next to your corner pantry we would suggest your appliances are built in to the cabinetry with the fridge against the far right wall. This would then provide a whole bench top with overhead cabinetry which could feature a splash back to your liking that would blend with your terracotta tiles. Within the island bench we would suggest you have your sink and a integrated dishwasher to maximise space within the kitchen when cooking. This may not fit in with your budget, however if you would like a free quote to provide a estimate of cost please feel free to call us on 03 423 9067, if you would like to see some of out work feel free to visit out profile on Houzz. We hope this helps :) Example of layout with in built corner pantry. Example of overhead cabinetry with tiled detail to match terracotta features you mentioned. Island bench example, make one side functional with integrated dishwasher and bins with sink, and the other a dining option to merge with the kitchen, however this would depend on measurements within your kitchen space.

You have a lovely young family they only get bigger. I'ts a shame that you can't find another position for the TV as it would be good to be able to see it from the Kitchen via your peninsular, so as to keep an eye on what the kids are watching especially as they get a bit bigger. I'am feeling a bit over the WIP and the idea of walking into a small often dark space, I really like the narrow hidden pantry (Running parallel behind the kitchen). I also like the full length pantries that can be shallow or with draws to make it easy to find things, with either sliding or opening doors. What height is the wall between the new dining and kitchen