IMO it depends on your level of entertaining . I think #1 is more formal and #2 more relaxed and okay with seeing the kitchen and DR right on site when you enter . We have a DR on the right of our entry and the kitchen staright ahaed we are pretty casual entertainers and every one always ends up in the kitchen for appies and grabbing drinks then head into the LR which is on the other side of a FP to the LR You are the only one who can really decide this . BTW in out home the LR is huge and can be seen when you enter but the kitchen is always the first stop. I lobve to set my DR table really differnt all the time so it is always set when we are having a dinner party si is nice to see on entry .