Thank you all for the comments!! It's really helpful! After few days of thinking and rethinking, plus doing experiments in the space, I think we will go with this: I am aware that this leaves us with small kitchen, but more then anything I hate being in a space with too much heavy stuff. For two of us, plus extra couple here and there I think it could be enough if we avoid single purpose appliances. If we feel that we really do need more kitchen space, I will move table to center and add another line of elements (galley kitchen).

Beautiful spacious kitchen with plenty of storage and style. Also love the hallway photo of your Reno.

It's many years since we've had an eat-in kitchen, but my current renovation incorporates an eating area in the kitchen because, frankly, I'm tired of the extra work to carry things to and from the dining room and the extra cleaning created by always using the dining room even for casual meals for just two of us. We have had bar stools at the kitchen island, and the grandkids use them, but my husband hates them and refuses to eat at bar height or even at a lowered 'ledge'; on the side of the island. So my kitchen reno will include a table on one end of the island, at regular table height and large enough to seat 5 if necessary. There is a large sliding door to the veranda close to where that table will be positioned, so it should be a pleasant place for casual meals and I expect we'll eat most meals there. I'm so confident of that, I'm converting the dining room to more living space and putting our big timber dining table in the alfresco area, which will be semi-enclosed, with open parts security fly-screened. The dining area we use when we have guests will be super-casual, with a BBQ in one corner and swim spa in the other. I just don't see a purpose for formal dining anymore, especially living in a sub-tropical climate.

I would do sink on back wall in front of window. Stove on the side wall that has the window. Could do 2 windows either side of stove. With stove on side you can still chat whilst cooking. Tall storage on opposite wall and fridge