What's the distance from the red wall to the back door?

Can you decrease the size of the island base cabinet and/or otherwise alter the island to create a bar either on the side or table (same countertop) on the end.

https://www.homedit.com/18-multifunctional-kitchen-islands-with-seating/

Distance from red wall to back door is 8’

On altering- we’re limited on storage space so we’re hoping to keep the 6’ x 2’ as cabinets. We also like the idea of sitting more in ‘a round’ at a table.

Are you interested in alternative layouts that include moving the kitchen door?

We are not looking at alternative layouts. The perimeter kitchen is staying mostly as-is besides moving the fridge to the outside wall and removing soffits above current cabinetry

Probably. What are the living room dimensions? What would go where the table is shown in the drawing? Have you left space for a filler by the dishwasher?

What about no island and a table there instead? I always wanted a kitchen like that.

I don't have the exact dimensions right now but the living room starts on the other side of the stairs (right side of picture) about 2 feet past the stairs.

We 100% want to keep the island, we need both the prep space and the cabinets for storage.

Inspiration images:

Tables looks like the children's table at Thanksgiving: an addition to the main event. I wouldn't do it. Looks like not enough room for a freestanding table AND an island.

Is this a tri-level home by any chance? So you said you weren't considering alternative layouts, but I'm compelled to show you another idea. The objective is to keep traffic between your stairs/living/dining and the kitchen door out of your work space.

This layout requires changes to windows and door BUT I encourage you to get estimates before you refuse such changes. When we got new cabinets I thought moving doors and a window would be way too costly, but I was pleasantly surprised. We went for it and moving doors/window made all the difference in how traffic (kids and dog) traveled between inside and backyard.

These cabinets are Ikea. The island is a freestanding island--Stenstorp--with storage shelves and seating overhang for two.

A table abutting the island is a good idea, especially if children are in your future. A high chair can work next to the table and the flexibility of having a separate table you can move a bit for guests works, too. Sitting at a table is much more comfortable than sitting on bar stools. If you change the chairs, look for new ones with back legs that don't stick out too far and cause a possible tripping hazard.