We removed most of the wall b/w our Kitchen & DR (we had to leave a 24" section for HVAC for the upstairs MBR), but instead of an island, we put in a peninsula that has 2 seats...3 in a pinch (but crowded!)

[At 11' wide, my kitchen is too narrow for an island with seating (you need a minimum of 13' to fit an island w/seating with only a counter run on one wall; 15'1" if you have a counter run on both walls + the island).]

We had originally had a small eat-in area inside the kitchen in a small bay, but as the children grew we outgrew it. Our DR was also unused most of the year for anything except a mail-collector and, occasionally, projects. We only used it on holidays for meals (Easter, Thanksgiving, Christmas).

Now, we eat all our meals in the DR and only use the peninsula for breakfast and occasional snacks or lunch on weekends. (I also often work at one end of the peninsula when I'm working from home.) We find it much more relaxing to eat in the DR and I have found that my children even behave themselves at the table...of course, that could be b/c they're growing up, but who knows?! As an additional "perk", all the rooms in our house are now used on a regular basis.

Our DR isn't large, but it fits a DR table (expands to 78" long), a china cabinet, and a couple of extra chairs in the corners...that's all we really need.

In the kitchen, we added a counter to the wall that used to have the table (we had to raise the bay window to counter-height...but it was well worth it) and my DH (who does the majority of cleanup) loves doing the dishes in front of the bay!

Here's a pic of it now:

We do have a new DR table & chairs now and we put my MIL's china cabinet back in...but, I don't particularly like it, so it will be replaced someday. This pic is w/the old furniture & b/f we put the china cabinet back (it's on the far back wall).

BTW...we recommend one-level counters here to maximize the usefulness of the counter. One-level counters offer a wonderful expanse of workspace for large projects such as baking, crafts, homework, science fair, gift wrapping, etc.

Bi-level counters not only cut into available workspace (b/c of the need for a slight overhang on the working side of the island/peninsula), but they usually have very little space on the top level (when the top is 42" high). Remember, if you plan to eat at the counter, you need room for a plate...usually they're 10" to 12" in diameter...as well as "wiggle room" so the plate isn't easily knocked off the counter. Then you need drinking glass room out of the way of hands/arms/elbows, which usually means above the plate...

It's up to you of course since it's your kitchen, but I wanted you to be aware of the pros/cons and think about what you'll be using it for and what will meet your needs/wants the best.

Seating space and minimum overhangs recommended by the National Kitchen and Bath Association (NKBA):

Guideline 9: Seating Clearance

• 30" high tables/counters ("table-height"): 18" overhang

  Allow a 24" wide x 18" deep knee space for each seated diner and at least 18" of clear knee space

36" high counters ("counter-height"): 15" overhang

Allow a 24" wide x 15" deep knee space for each seated diner and at least 15" of clear knee space.
42" high counters ("bar-height"): 12" overhang

Allow a 24" wide x 12" deep knee space for each seated diner and 12" of clear knee space.

Remember: These are minimums

Here are a couple of threads discussing single vs bi-level counters and related topics:

Thread: Tell me about your bi-level island

Thread: Anyone do away with their kitchen table and extend their island?? [Contains NKBA recommendations for various aspects of islands and peninsulas]