Is the sink on the island? Do you love the layout?

If the sink is in the island and you lower the counter, you will be able to see your dirty dishes and drying pots and pans from whatever is on the non kitchen side of the island. That may not be the look you are going for.

Can you provide a couple pics of other angles? Are your cabinets wood, in good condition? Have you priced painting the cabinets (big $$)?

Your layout could be improved, but once you spend this $$ on the changes you've mentioned, you're stuck. Would you consider other modifications?

Can we see the LR and IMO a raised bar hides nothing unless all your friends ar less than 42” tall. I think before doing anything you need to think about things you do not like about the kitchen Having cabinets painter properly by a pro is expensive so make sure you love all that you have, The other item is lighting all the bulbs should be LEDs 4000K before choosing anything. No gray cabinets IMO stick with a nice timeless white if it works with the rest of the house.Take all the stuff off the top of the cabinets for sure. If you were to go to new cabinets then take those to the ceiling . When you remove a counter very often the backsplash gets damaged so be prepared for that.