What a great house you have! I wouldn't put in overhead type cabinets as I wouldn't want to lose the open concept of the house. A long bar though will look great.

Look at my thread "cabinets installed, island progress". There you see we only have 1 cabinet and the rest is supported by a SS post that is rated for 600 lb. They come in other finishes. You can also use a pedestal table post.

I agree w/MuleHouse. Overhead cabs would take away from the open beauty that you have.

The long bar will be amazing!! Please post pics when you can!

What are your goals? Do you want to gain some storage? Do you want to mask the kitchen from the family room? Then the overhead cabs used as base cabinets would work well. Are you just trying to gain a breakfast bar, but want to keep the open feel? Then the pine log posts would look really cool.

Maybe you can mock up closing off the space with some cardboard boxes to see which feels better to you, open or closed space.

I guess I'm wondering why you'd like a breakfast bar in that spot. It seems a ways from the kitchen proper, and it looks like you've got enough space to put a cozy kitchen table right in your kitchen.

I like the natural wood peeking out from the family room. : )

Someone recently posted an older kitchen that had a long peninsula without stools on the LR side. She and everyone who posted agreed the wall o' wood was too much. How many do you want to seat? I think an island would be a better choice than a peninsula.

may_flowers, that was a U shaped kitchen with cabinets that had no variation in them. This knotty pine has visual interest.

I think some cabinets + legs would be a good combination. You actually (this coming from the one who has no use for an island) have enough room you could do a neat island. Bookshelves on one end, legs, some neat, rustic natural log counter (if you decide not to granite).

You have a home with so much room, the ideas are limitless!
Oh - don't upper cab it. You'll lose a lot of charm and airiness.

Once a peninsula is built connected on the right, this will also be a U-shaped kitchen with a lot of knotty pine. But I don't think the OP plans to use more knotty pine for the peninsula anyway.

I would try to get seating and prep space. There's room for an island set back from the edge of the step-down. This kitchen needs prep space--every square inch of the perimeter is occupied. What plans do you have for the dining space near the fridge? Do you want seating facing the family room so people can watch TV?

I think a peninsula bar would be nice. If it were me, I would definitely do cabinetry beneath cause we can always use more storage. If you don't want to replace all counters right now, you can get an ikea countertop for about $50. they have some really nice ones.

OT - a stone veneer would be great on the family room side of the peninsula.

like this:
http://st.houzz.com/simages/209771_0_3-6466-traditional-kitchen.jpg

or this:

[Contemporary Kitchen design[(https://www.houzz.com/photos/contemporary-kitchen-ideas-phbr1-bp~t_709~s_2103) by Houston Architect Charles Todd Helton, Architect