Need a bar?

I would definitely do a wine cellar there and it doesn't need to be fancy. Get wine crates, a variety of stackable wine racks. I'd put a chest or table with a drawer where it's easy to stand and open a bottle. Some wine glasses in a cabinet where they won't get broken.

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I have a wine wall in my dining room

Agree ^ i wouldn’t want to sit up high and feel like i was going to fall over that bannister

A regular height is more comfortable and accessible. Will anyone really sit there, if you have a kitchen table? If it’s only to fill the space, consider what might be useful or fun.

I dislike sitting anywhere where my feet are dangling like a five-year old sitting at the kitchen counter.

we will actually sit there there are only stools at the island

There might be a few options for you for this dead space. You could possibly do a small table, a small console table and chair, or a bar area. Below are some visuals that might just help more with your current dilemma.

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