Maybe put the tv unit against the wall between the two bedrooms or wall mount if possible. The sound will project away & the robes will help reduce sound. The couch depending on the length could go in the middle facing this wall or butt up to the island. The dining table then has all the area near the fridge end of the kitchen along the long wall giving the room more circulation space and room for a buffet at the entry to the room. This means you can place a large painting next to the dining table too & move it close to the wall if you want. Depends on furniture sizes of course, good luck!

We had a table with benches (like pews rather than a straight bench) when I was growing up for a family of five with often visitors and in a small dining area (but with walls on three sides). It worked well and I have fond memories of being squished up with my brothers (and creating havoc) or grandparents. If you push it against the wall until meal times, that might help with the baby gate access? This way you can still sit at it casually on the out side and just pull it out when you need...just a suggestion :)

The last home we had was a very small workers cottage so I kept the walls a light off white, table and to unit tops were gloss white to bounce the light around. My dining chairs and bar stools were clear acrylic so that I could see through them, the ends of my island bench/brekky bar were mirrored and my curtains were textured white sheers so that they also didn't take up too much visual room. All of my furniture was on legs so that I could see under it and the lounge room rug was pulled away from the lounge just a teeny bit so that I could see a little bit of timber flooring all the way round it, that all made the floor size look just a bit bigger. Bedrooms had mirrored wardrobe doors and bathroom was almost completely white (except for dark floor) and had frameless shower screen and oversized vanity mirror to reflect as much light as possible. Friends and visitors would comment that the house was bigger than they had imagined from the outside.......it wasn't, it was just styled inside to make it look larger.

trying to think of all the options: the island wouldn't be wide enough to include more than a couple of stools at one end and that would restrict the island's storage potential to cabinets or drawers totalling about 120cm x 60cm x counter height which can be easily matched by a tall cabinet in the "leftover corner" which can be up to 90cm wide, 60cm deep and about 2 m tall and a freestanding storage cabinet could look more interesting than built in for this spot (check out Ikea dining storage for ideas) and there's also about 150cm wide by 30cm deep x counter height possible opposite the new laundry and, if the pantry had a folding door opening towards only one side the fridge could just stand inside the pantry without any complex built in cabinetry. My antique CAD program has pretty basic "pictures" but here's an impression of the view towards the open bathroom and laundry doors and towards the pantry .. the awful colours are necessary to be able to see the detail