If you go for down lights you will need to leave a gap around them of 100 mm between the recessed part and insulation so the insulation doesn't catch on fire. This also creates a problem with the thermal performance of your home because heat can move freely through the ceiling where there is no insulation. It can make a big difference even if there are only a few down lights. Also, down lights are very directional (send most of their light straight down) so you need to put more in to get the same effect. You could try track lights that attach to the ceiling instead. If you want a pendant go for something cheap and easy to replace if it is damaged by toys/clothes or whatever being thrown around. Ikea have lots. FYI dimmers don;t educe the power consumption, merely reduce the intensity of the light.

Unfortunately no photo at the moment as the ensuite will be a new room as part of the renovation. The room is 3.6m x 3.4m, with 3.4m ceilings. The look we want is raw luxury - the tiles will be a mid grey (charcoal), tapware matt black, benchtop solid wood (blackbutt), cupboards matt black, bath, sinks and wall hung toilet - white ceramic. Lots of natural light from large velux skylight and highlite window, but looking for mood lighting that feels warm and luxurious. A touch of glamour without too much glitz....

I don’t think it’s had it’s day, but it depends on the overall look of your kitchen, it sounds modern and minimal. Do you have a pic or plans ? How high is the ceiling? If you have a standard 2400 height ceiling, I’d suggest going with a sleek linear style pendant, it doesn’t need to run the full length of the bench either.

I like option 1 too, if you are worried about them not being big enough, can you find something like that, but that is bigger than the 16cm? Also, you could go three, I'm posting our former kitchen reno for you, the bench length is 1600 and our pendants were probably around a similar diameter, possibly slighly bigger, and given how heavy ours were in comparison to what you have chosen I definitely think you could get away with three if you liked the look better.