To correctly insert the pictures:

Design 1

Design 2

1) I would vote for design #2. You mention the distance from island to that corner as a concern for the 2nd design, but it doesn't look much better in the 1st one. I would be more concerned about the space from the island to the fridge. But overall I like the layout of the island design the best. Also, in the first one, if you store your dishes in the upper cabinet, it will be hard to reach with the peninsula in the way.

2) I'm not a huge fan of open shelves myself, but if you like them and have a use for them then it would probably look good.

3)I don't fully understand what "wall B" is for. Is it the wall of a bedroom, or is there just a small hallway on the other side if it? Maybe posting an actual picture of that area if your house would help?

I wouldn't do the open shelving but I prefer a cleaner look. To me it clutters a window that lets light in.

Another vote for design #2 :)

Voting for #2. I like the openness of the look. Good luck in your decision making.

I think you can see from viewing the layouts that traffic could flow much better around and through the island plan than the peninsula plan...

BUT...

We need dimensions and aisle widths. And I'm afraid you're planning seating on the fridge side of the island, where it appears you probably don't have room.

As far as the wall removal goes, I'd like to see more of your floorplan. Another option, although I admit to not understanding the full idea of what you're proposing, would be to leave a portion of the wall that might help delineate what you'd like it to.

I would not put those little shelves between your cabinets and the window. They won't hold much and I like a bit of wall space around a window... Gives it some breathing room, some focus for the window and trim. Not using every little bit of wall is a more gracious look.

Do you plan to have seating on the curved side of the island (Design #2)? The aisle b/w the refrigerator and the island does not appear to be wide enough for seating. You need at least 54" there (refrigerator handle-to-island counter edge), preferably 60" to 66", especially if that aisle is busy (from the door on the right, through the kitchen to the Breakfast Area and the rest of the house?)

If you do not plan seating at the island, then if you make the island shallower, the island layout (#2) might work, except...

The island is somewhat of a barrier b/w the sink and the refrigerator. While it's not as bad as some I've seen, the island is still a "barrier island".

Did you plan to prep on the island or b/w the sink and range/cooktop? If the island, the island then becomes a full-fledged "barrier island", the DW will open into the back of the legs of anyone working at the island, and you will have to cross the Cleanup Zone every time you go from the island Prep Zone to the Cooking Zone. If you plan to prep b/w the sink and range, then this won't be an issue... Note that most people end up prepping where there is a water source...in your case, this will be b/w the sink and range/cooktop b/c you do not have water on the island.

The peninsula layout (#1), offers a clear path for traffic to go through the kitchen w/o any barriers - like people sitting in the middle of the aisle (island). It also gives you a clear shot to the refrigerator from any point in the kitchen.

I don't like the DW location in Design #1.

How much work are you doing in the kitchen? Is there an existing window there? Is it being changed at all? If not, would you be willing to change it?

If you must go with the window where it is, consider combining Designs 1 & 2: The left leg and base of the "U" from Design #1 + the refrigerator wall and range wall from Design #2.

Could you push the peninsula farther out into the "Breakfast Area"?

Do you have a Dining Room? If so, consider eliminating seating in both plans. With a DR, you will have three different seating areas - two of which are in very close proximity to each other. You will have the Breakfast Area, DR, and island/peninsula seating. Do you really need seating at the peninsula or island?

If you are not removing Wall B, then you need something b/w the refrigerator & wall and the refrigerator wall in Design #2 has that.

Yes, Design #2 does look more open, and it is; however, the layout of Design #2 can become a big headache when factoring in narrow aisles, a barrier island, and people sitting in the middle of what could be a busy aisle.

Bottom line...both designs have their pluses & minuses...and the minuses in both designs are serious minuses, IMO.

How wide is the aisle b/w the countertop on the sink wall and the countertop on the island? (Aisle widths are measured b/w the things that stick out the farthest: usually counter edge-to-counter edge, but if there is an appliance that sticks further into the aisle (e.g., a refrigerator handle), you measure from the part of the appliance that sticks out farthest.

I also do not understand about removing wall B. It looks like an integral part of the room(s) on the other side. Do you have a layout of the entire first floor that you can post here? I don't think actual pictures of the existing first floor will be much help in showing us how the rooms are connected and how traffic flows through them, mainly b/c there's no "connection" or flow b/w the pictures - so, try to post a layout; a hand-drawn sketch of the first floor is usually fine. However, for the kitchen, a detailed, to-scale drawing on graph paper is best (there are plenty of sites offering free graph paper that you can print and/or download.)

If you would like more help, I suggest you draw up your kitchen space on graph paper, label all dimensions (wall/window/door widths & the distances b/w those walls/windows/doors), and label all doors with where they lead. Then, give us a bit more background about you and your family and how you plan/would like to use the space. See the "Layout Help" section of the "Read Me" thread for more information.

Good luck!

Here is a link that might be useful: New To Kitchens? Posting Pics? Read Me!