Any ideas???

If all you want is a laundry stack upstairs:

Each kid can have his/her own sink and toiletry storage area, even if they can't be easily used at the same time.

In the kitchen, since you have a dining area and seating at the island, I removed the table in the nook, and extended the pantry and PR. I made the island deeper (ap 5.5'), with extra cabinetry which opens on the sides or under the seating overhang. I removed a window upstairs, so I'm adding it back over the sink and extending that run to the double French doors. Fridge is closer to the living/DR areas, where it's more convenient but also less visible.

This plan gives you separate prep/cooking and clean-up areas, which will make it easier for helpers to load or unload the DW, or gather dishes to set the table, without crossing into the other work aisle. There are extra prep spaces on each side of the clean-up sink, and the wider island sides will also make nice work areas for helpers. I'd like to turn the island so that primary prep area faces the living areas, but with a table in the DR I don't think there is enough space for back-to-back seating and a deeper island. You could, however, have a fourth seat on the short side (see second option).

I added cabinets with snack areas on the ends of the pantry and PR walls--the coffee area could have a small sink or the coffee machine could be easily plumbed, since it shares the wall with PR plumbing. The snacks area could house a bev fridge. I put the MW in a drawer on the island, but if it's used mostly to reheat coffee and make popcorn, it can go in an upper in the snacks area. Bev/snacks area is close to the exterior door for outside entertaining.

Second option for island:

What is the existing floor plan? I am confused - where is the fifth bedroom that you no longer need? There are only 4 bedrooms on the proposed 2nd floor plan, and mamagoose's plan takes you down to 3 bedrooms.

I want a full laundry room on the second floor. Not stackable in a closet.

Check finished attic plan for other bedroom and home office area

Also was thinking I could make the master bathroom larger as it seems small to me now

I don’t really need 5 bedrooms so was thinking of removing bedroom #2 on
second floor (to make room for larger master and 2nd floor laundry
room).

Hmmm...if second bath and master closets stay as drawn, then laundry and master bath could be reconfigured:

(I flipped the laundry so that all plumbing is shared with master bathroom wall.)

ETA, if shower is more narrow, the dividing wall between master bedroom and bathroom could move over proportionately. The area I marked 'shelves', for bathroom storage, could be flipped to open into bedroom, and made the same width as the closet depth. I think it would work for shelves for shoe and/or purse storage.

Very interesting! And now on the first floor which way do you think is best to have island face? I’m also torn on if I should flip dining and living room with each other. I fear walking into the house and couch is right there. I will be putting in gas fireplace and tv above it in living room.

Only thing I worry about with having island that was is the back of the stools face you when entering the home.

If you don't need the fourth seat at the island, and especially if your kids are of an age (or soon will be) that they play in the back yard, having the island parallel to the range/fridge will work better, IMO, since there is a peripheral view of the window.(Assuming the island doesn't crowd the DR. Have you measured your table to make sure it fits?)

Do you want a guest room?

I think having a stackable laundry on main floor is enough of deterrent to make the 4th bedroom on the finished third floor what do you think?