It's an idea I've been contemplating myself so I did a search on "island with dining table", this was probably closest to what you described. I plan to convert our (never used) dining room at the front of Calif. bungalow into a bedroom and enlarge current kitchen into adjacent informal dining area so this option would work well (if I can get H to agree that is!)

Shifting the laundry will create a larger laundry and allow for a 'kids bedroom zone' with better access to bathroom for all 3 minor bedrooms. Place the rumpus where dinning is. This can be separated or use the great sliding wall/door idea. It also allows view from kitchen. I agree with moving the fridge and creating a more open WIP. This also allows for a WI Linen - which could be opened up to the mud room, or even a powder room. I found the front living room to be an awkward size and shape so did a slight rearrange in that area. This gives the Living Room access to the north facing patio/outdoor area, tying all the living spaces together while keeping them seperate.

Hi Souzette, Would you please message your Email? I will try to share what we have.

okay so I haven't read all the ideas and comments so forgive me if I'm doubling up. What about lifting the house up? Maybe you could have it raised to the same height as entry. It might seem drastic but isn't as much as you think. That would keep the original footprint of house on block, and have plenty of space under for a granny flat. My parents had a house like that. They built a big carport that came off the driveway and it connected to the house. It was essentially spanning the gap. the drive sloped down a ways and then the carport came across.