I think a bench with a couple chairs or all individual chairs would work better for this space than a banquette. It'd be more versatile should you decide to rearrange.

At first I thought a banquette would block too much of the window, but where you have it planned, it seems perfect to block the view of and from that building across from you. It is a little unusual to have the table so far from the kitchen and on the opposite side of the living space, but it looks like the best use of your space. If you made the living room where you are proposing the dining table, there would be no place for your tv.

Is there an overhang on your counter where you could place some stools for people to hang out closer to the kitchen if they want, or to grab a bite without going to the dining area?

Great table and banquette, by the way.

ETA: I forgot to ask what your plans are for lighting over the table? Looks like there is no lighting either place, by the window or close to the kitchen?

You could actually place a table in front of your counter top facing in to the big room with chairs or benches. That would free up lots of space for other purposes. That being said, if you're committed to the banquette, I agree it would look better with the banquette facing the kitchen. My question is what will be in all the empty space between the kitchen and the placement you have in mind?