How would you use the space? Conversation group? Reading area? Form follows function.

Hi. Green and white could work; you have a nice trim mantel in white, spindles. Green is also nice with wood cabinets. I'm assuming your walls are sage of some kind and green chairs in pattern wouldn't necessarily be too much.... here's patio curtains.
http://www.jcpenney.com/windows/royal-velvet-supreme-pinch-pleatback-tab-lined-patio-panel/prod.jump?ppId=pp5003970047&searchTerm=patio+panel&catId=SearchResults&_dyncharset=UTF-8&colorizedImg=DP0501201417111811M.tif

Where do you eat? The island doesn't look like it has seating at it. So I like Darzy's suggestion only with more casual look

jck910- we replaced the granite top and take quick meals here. Otherwise, we eat in the dining room. We will also be getting hard wood floors throughout this entire back area, and changing kitchen cabinets to white.

groveraxle- general gathering area for cocktails, reading, overflow from kitchen (because everyone always gathers in kitchen!) :)

Darcy- your idea is exactly what I've been contemplating. I was thinking of a lower round table, with maybe swivel barrel chairs. Something kind of like a coffee house might have? I just haven't found a table like the one I have in my head. Probably pedestal, about 30" round, but not too high. What do you think?

I would keep the table, table height. It's far more comfortable to put your beverage down on the table, rather than leaning down to a coffee table. Plus, with a table height and parties, you can add the leaf and make this your beverage bar or buffet table. Also, the space is obviously meant for a dinette table and if you do the coffee table set-up I think it would look like you tried to make a new family room out of it and it may look "odd". With a table height, it will look more like a "morning room" where you can relax and look out into the garden, but still have the casual feel. You could even put a nice lamp on the table there. I'd also suggest a flush mount drum shade chandelier in the space. The low chandelier will look like the table is missing in that area. I like your idea very much doing something different in the space! The swivel barrel chairs sounds great.

After you get the hardwood floor in, the bar/bench and stools that are against the wall now can go where the ottomans are. That would also extend the "kitchen gathering" space you enjoy.

Thanks Darzy. We changed the light to the attached photo. And you mentioned looking out at garden. So, I've attached a couple pics of the garden we created last summer (my first garden ever!). I think you may be right about the table height. I'll start looking for a standard height pedestal table and see what strikes me. :)

Your home and garden looks lovely. Before you start hunting for furniture for that area, wait until your cabinets and floors are done. The color changes will be drastic and may affect what you want there.

What a beautiful garden! Oh yes, what a view! I like your new track lighting. It does remind me of the "Coffee Lounge" look you are going for.

This is inviting to read and sip coffee
http://houzz.com/photos/2267707

This small sectional is inviting too
http://houzz.com/photos/2490742

sootsprite...I love that look too! The problem is timouse's space isn't a nook and the wall to put the table/sitting area goes straight into the family room. She can't work with any "corners".

Love your ideas sootsprite! I have thought about blocking it off, but agree with Darzy that it doesn't fit the room,
or the flow I'm trying to achieve. Thank you for your input!