There is a pantry next to the fridge & laundry room next to the stairs. The island doesn't hold anything important. The counterspace on the island is nice though.

Would you consider a new top for the island.....something to match a creamy shade in the counters?
You could then extend it a bit to the left as we view the photos and have at least comfortable seating for two. Use the cabinet space to store seldom used or seasonal items.

Yes, but the problem is that I hate having the island right in front of the stairs. We are thinking of pushing the kitchen out (on the right side) & starting from scratch, but I was just wondering if someone could see something that we don't see.

We'd need pix in all four directions to make any serious suggestions.

Stacy, why does the island in front of the stairwell bother you? It's approximately three feet away, correct?

Is it possible to reverse your stairwell?

I'm not sure. I've always hated it though. It is a little over 3 ft away. Unfortunately, we cannot reverse the stairwell.

What do you hate about it? I think it's important for you to figure that out so you can properly assess what your options are. In my opinion, a peninsula would really cut your traffic off to your living room. Removing it altogether would give you a lot of space and make the kitchen feel bigger, but you just need to figure out if you can live without it. Maybe try going without using it for a week to see if that's an option?

Could you simply turn your island 90 degrees?

I have tried that. Maybe I just need a smaller island.