Our goal is to create more cabinet space as well as work space. Keeping the original U shaped kitchen doesn't allow for that. Any creative ideas that are a compromise?

What will go in front of the bay window? Do you have a formal dining room somewhere nearby? I agree with cook's kitchen - this layout creates odd unusable areas, and the space presumably designed for bar seating is too crowded as you originally posted. What about something like this? the space would not allow for bar seating but would give you an island and lots of storage. You would have to put the sink in the island though.

You have to deal with the architecture. The bay. It only makes sense as a location for seating.

You could do a much smaller island with a table in the bay, but you get more storage and more counter space with a peninsula over an island. Perhaps you need cabinets that work harder with better organization. And taller wall cabinets.

Can you show how the kitchen relates to the rest of the house? And where those doors lead?

The doorway to the left of the range leads to a formal dining room. The doorway to the left of the fridge is the entry hall. To the left of that is our basement door and to the left of the basement door is our laundry room. The den is open to kitchen. Separated by a step down and stone wall that is shown in the pics. Stone wall must remain. Soffits and beams to be removed.

The island is so far from the stove it's going to be strange. I have a very similiar layout but put my island closer to the stove it's only 26x47 but fits with a ton of room around it in my small kitchen

Thanks - you make a very good point.

Just looked a little closer and your dimensions don't seem to support my proposed plan I have a 47" cabinet in the corner by the range where you have a 36" cabinet. I think I'd do a peninsula in your case.