Have you gotten preliminary pricing for your remodeling plans? You might want to start with budget, and see if that will handle your scope of work before expanding it by another 60K+ with a kitchen.

Not loving that dysfunctional island shape at all. Or the fact that you have well below the minimum clearance between the sink and stove, which is THE most used spot in the kitchen. The whole thing is detached from functional zoning and tries too hard to put an island somewhere it's not suited. A galley kitchen would work much better.

Post something with some accurate measurements please.

Here is a link that might be useful: Cost vs Value 2015

i second what greendesigns said about the stove/sink...way too close. my kitchen is too narrow for an island so 90% of my prep takes place between sink and stove. i have an L shape with the stove on the short L. i have a super susan and dishwasher between stove and sink and i wish i had at least 12" more inches to play with.
i had supposed kd draw up plans that were awful so you really need to think about how you use the space now and what should be different. many kds just put boxes in a design. not many have the expertise of the kds on this site.

where are your dishes going to be stored? to the left or right of the sink? I would put the DW closer to dish storage. My DW is right under where the majority of my things are stored.Takes me no time at all to unload DW.
I agree with the others about the island...it doesn't look like it makes sense to me? Like it was placed there for the sake of having an island.
(I'm unable to open the third pic to make it larger)

Do you need to have the pass-through into the family room instead of extending the cabs along the family room wall? I would keep the 3 sides of the kitchen and nix the island. If you want it open, open the top of that wall b/w the kitchen and family room...extend the counter top and throw a couple of stools/chairs on that right hand wall, in family room, if you are set on a breakfast bar.

Maybe something like this?

Guys and gals, thanks for the quick input. In terms of budget, I think I've been more focused on a whole house number, but I'm seeing it definitely makes sense to think of it more room by room. I think the kitchen will have about $30k-$35k allocated to it. Below is a pic with some measurements to help provide a better idea on the space. The old kitchen had the oven and dishwasher right next to each other, so we just plugged it in the same way.

If your wife felt blocked in by the u-shape, she'll feel in a prison in the odd-shaped island. No walking around space, always navigating around a curve or corner to get to the fridge, ugh! I think the only real favor your KD did for you was moving the DW to the right of the sink. Avoid having a DW between sink and range. I have that now and it is the single most irritating thing in my kitchen. Well, that and fighting for sink due to lack of prep sink. Can't wait for those issues to be fixed in my remodel.

I like Sena's plan. I would just do one tweak. If the window can be moved, switch places with the prep sink and range. When we cook we move from fridge to prep area to cook area. This would allow for that workflow and it's nice for prep area to be closer to the fridge to more easily grab things.

I definitely think you need a lot more room between your sink and your range. At least 4 feet if at all possible.

I would be inclined to give up the "breakfast nook" and go with island or peninsula seating + your nice dining room. That'd give you a lot more room to play with, as you could incorporate that breakfast nook area into either pantry storage, walkway, etc. I can't read what that little closet next to the breakfast nook is, but assuming it's just a closet of some sort, you could combine that area, too, and you can then also take over the current pantry space . . . making for a large pantry space plus space for a cabinet run. All that space should be large enough to make a serving/wine storage/buffet cabinet run along the front of it, with a door into your new pantry at one end (presumably the end towards to Left of your drawings).

from the drawing at 12:36 on 2/3

end the counter run by FR same as on the fridge side. Make doorway there into FR. otherwise one has to walk all around the bar area to get to the FR and to kit from FR.

Not so closed in then either. Put the sink in area where you now have stove and stove on the run on FR side. Add another window over the sink or run a large window from sink to other window. This gives you a larger area to prep between sink and stove. It also keeps the fridge to sink, to stone (counter) to stove flow.

You could reverse stove and sink, keep stove about where it is now and put sink on counter by FR. In this tho, you'd be crossing the kitchen from fridge to sink and then back to the stove.

It would end up similar to drawing at 2:21 w/o the angular island, just a straight rectangle island running L to R.

are you going to open up the wall on FR side of kitchen? If you're planning to open the whole wall, there might be more considerations on having the stove there.

If you haven't had a problem with use of dw close to stove in the past then you should be ok - unless you plan on more people living there and / or helping in the kitchen.

Do you have kids? plan on kids? kids grown and gone? 1 cook or 2?

Here is one idea. I avoided moving the sink, since you likely want it under your window.