If the main idea is to provide sufficient open countertop area for two people, and you can use the hall closet for the refrigerator, I'd put it there to give you more uninterrupted counter area. The peninsula against the exterior wall seems more functional to me ... items from the refrigerator can be placed on it on their way to the sink, and someone operating in the wall corner countertop area to the right of the sink can use the peninsula surface to place other items on it if needed.

If the kitchen is small, it is best to keep the plan of the cabinets as simple and continuous as possible. An island make the space seem even smaller, and get in the way of easy straight travel across the kitchen for both people in it.

Good luck!

Couldn't have said it better if I were <insert favorite designer here>

You might get a better response on the Houzz Kitchen Forum.

http://ths.gardenweb.com/forums/kitchbath

Faith - Just head on over to the Kitchen forum and repost your question.

The app is the worst. You can't get to the other forums using the app and you don't know if you are posting to a thread from today or 5 years ago.