Yeah you can definitely knock down the walls and create an island instead. It’s not that cramped though—you might want to focus your energy on other aspects :) What else do you have in mind for the remodel?

Ideabook if mid century modern suits your tastes:

https://www.houzz.com/ideabooks/23863320/thumbs/kitchen-ideas

Fewer walls mean less room to place things. You have an open kitchen that just needs updating with more streamlined cabinetry and bar stools.

the island is a bit funky to me..

Yes, that is my issue. I think if we make it all one level and extend it a couple inches it would look much better.

does your plan involve keeping or replacing these cabinets? I agree you could open up the area around the sink, and/or move the kitchen to the right of the range (although can't see enough of that wall). little more info? budget?

Painting the cabinets white and adding hardware. There is about six more feet of wall space to the right of the range. We are adding backsplash and replacing countertops. Furniture pictured is not ours. We just bought the house.

what if you 'straightened' the bar top, stopped it the first chair, took down the double and made it a level overhang? you could bring in a slender type of island for the middle of your working space. your fridge is in a good spot,,,don't know if moving that to the end would benefit. what would you put in it's place? you could always put in some lower cabs to that far right of the range and make a beverage/coffee bar or something similar.

That seems to be the best idea so far. I would like the bar to be the same level as the sink. Replace granite and do something with the area under the bar. You can’t tell from the picture but the granite is tiled so there are grout lines everywhere.

Remove closet pantry.

When you're ready to do the walls in the kitchen and/or
backsplash, you might want to consider wall tiles (peel & stick or
mesh-mounted) that can add a striking effect and dimension to your wall that
costs a lot less than you might think and are easy install. https://www.houzz.com/projects/users/info959?lt=hl