We really need photos that show the rest of the space and how it relates to this little area to answer your questions.

Without additional photos of the space, it's difficult to say. However, I don't think it's a problem to have two sitting areas: one with the sectional and an intimate conversation area in front of the fireplace. Will putting the sectional on the alternate location erode the space available for dining?

Thank you! I will upload more photos

Here are photos from the previous owner. My daughter'f furniture is different

Does she even need a dinette table? Her kitchen island pretty big

Thank You!

Whether she needs a dining table depends on how she enjoys eating. I find stools at a counter uncomfortable because the stools never have a foot rest at the right height for my short stumpy legs. So I would rather eat sitting on the couch, and counter stool space would be wasted in my home. I like having a table to sit at with friends or when relatives that have kids stop by for a meal because sitting in a line makes conversations more difficult.