There are two issues here. Going from a two tier to a single level peninsula is an enthusiastic yes. The cost will be minimal if you are planning to change your counters anyway, but you will have to move your outlets. Turning your peninsula into an island? That depends on how much you want to reconfigure your space.

Ahh yes sorry new to this! I did mean single level not island.

Do you think that would look better?

Totally. It will look more updated. What counter material are you considering?

Yes totally

Quartz, here is a pic of the slab we’re considering.

Also the flooring we liked and a pic of them together.

Not sure if they match too much but I liked it.

Also the paint colors were considering.

Far left, Second to Right and far right.

I would keep it 2-tier. That tier is a backsplash for the sink and effectively a wall keeping your working kitchen out of the rest of the home. Certainly expand the top tier if it's not adequate for desired seating.

@Nik M, you have very warm cabinets. Are you planning to keep them as is? If so, paint your samples onto a wall next to the cabinets to be sure they play well together.

I don’t put barstools there since the table is directly behind the second tier. So space isn’t really an issue. I was thinking it would be a good update since nothings been done in the kitchen since it was built in 2003. 2 tier bar just looks a little dated.

I’m not sure if the cabinet color would match. We were thinking one of the lighters blue/grey or white?

We were just going to repaint.

In general I like one level vs 2 tier. However, once that area is all one level, the sink/dirty dishes/dishrack, etc are all visible to the dining and living space. If you are generally tidy or don't mind seeing "the mess" while you eat or lounge, then it's fine.

Island = yes, but you will have some major challenges by the looks of it.

We did both, and I recommend it to you! We had a 2-tier penninsula that we knocked down to one level for most of the penninsula, but kept a backsplash riser directly behind the sink. That way, we are not seeing our sink from the living area. Here are some before & after photos of our project:

What @pittsburrito did is so clever! And I think a single level looks more modern.

Thank you everyone! I think we are going to go ahead and remove the second tier.

Now the issue we are having is matching the colors.

The light floor and light countertops may not work. We were thinking of painting the cabinets to match the grey accent in this quartz