Step 1: change out that ceiling fan!

Check out minka aire all white ceiling huggers.

commit to your dining seating first....also-do you want an island with a couple stools? You need at least a moveable cart to make the kitchen work....depending on budget think about an island, then a trestle or farmhouse table over to the left side. The room can take various seating arrangements...but will you have a tv? decide where, if so.

Yes, you need an island for more prep space and it will also serve as a dividing line between kitchen and living room space. Agree that the dining table should be to the left of the kitchen, again to define the living space. Our great room is very similar except our dining area is to the right of the kitchen. In our kitchen/dining/living great room we also have our sofa with the back of it toward the kitchen/dining area. This layout really defines each space while still all being in an open floor plan. Also, pick a bright accent color for kitchen accesories. It will need some color to jazz it up. Also a big colorful area rug in the living area. If the living area is big enough, I would go with a sectional sofa and a couple of comfy chairs. Stay neutral with the sofa and add the color with the rug and chairs. Just my Suggestions.

For a quick, cost effective island fix check out IKEA...love this one: http://www.ikea.com/us/en/catalog/products/40323022/

A larger top could be put on for overhang seating if you have the space for it.