Definitely place them for function. Imagine yourself working at the various places in the kitchen and don't put them where they'll create shadows in front of you. I line them up over the front of the counter, just in front of the upper cabinets.

I agree, and you might consider adding one over the peninsula.

Yes, Rapp, and probably also a couple in front of the floor to ceiling cabinets to the left. I should have said that too.