I'd leave it for now. When you've lived in your house for a while, you'll probably know what you need. Maybe more storage, maybe more seating, maybe a homework station/desk, maybe a big front end of a truck as decor.

Instead of shelves, wide 11" deep pantry cabinets would be good storage options behind wide doors

It’s charming! it’s a sweet spot to sit while waiting for the roast to finish, or if you have kids they can do their school or fun reading there or see the TV. Do take down the bookshelf. but, if it is just two or three of you, a small breakfast table will work.

How will you use the other corner, where the previous owners have the French country table? If you need pantry storage, that’s a good spot.

Do a search for "kitchen sofa" or "dining bench sofa." A kitchen sofa is the most wonderful thing. A friend had one, and we plopped down there all the time. Score a loveseat that fits off Facebook Marketplace, preferably an armless one.

Thank you all for the replies.
I just got a second to create a floor layout w dimensions to better understand the space as requested by Patricia Consulting.

Yes, the other corner where they currently have a desk I plan for us to put a pantry!

Have to say the "staging" probably helped you get the house for a lower price! Those two slipper chairs are dreadful as are the booze bottles on the top open shelves in the kitchen. "Honey, get the ladder. I'm in the mood for Kaluha." I guess the bad staging helps potential buyers figure out how to use the space, but this staging has a negative effect. You'll have a good time making it yours, minus those dopey slipper chairs and sky high liquor bottles. The space itself is great with potential for entertaining.

Definitely agree!!! We love the character of the home so forging ahead as it's in an adorable walkable downtown area and got it at great price. Excited to see our stuff in there that is for sure ;)

Take down that wall shelf by the fireplace. After you've moved in you can try either one or two chairs near the fireplace with a small round end table. Once you have the panty built where the desk is, the area near the fireplace will seem much smaller and may just accomodate one chair and ottoman.

Yes, fix the floors first. Choose a engineered hardwood, or a LVP, or just vinyl ,individual, glue down strips (Earthwerks) that look so real wood, you have to touch it to see it is not.

Since you have a lot of seating on the island and the living room is right there, what about a bev center - wine ref, coffee station - just don't get too close to the fireplace. I also like the idea of a little bistro table and 2 chairs to relax with a cup of coffee.

Patricia has the right idea though. Move in first and settle everywhere else. There is no rush for this spot to be decided on. You will need to see what your needs are after you have been there for a bit.

Congrats on the house!

Does the stroller belong to you or to the previous owners? If you have young kids, I'd keep that space fluid and flexible for at least a few years. We have an eat-in space in our kitchen that has, over the past 15 years, been a breakfast nook, a seating area with adult chairs; a seating area with a kids' sofa; a playroom; a reading nook; and currently an office. My long-term plan is to put laundry there, but that's a much more permanent use than anything it's been to date (and when we first renovated our kitchen, the plan was for it to have a built-in banquette that we didn't have in the budget quite yet, so plans can change!) I appreciated having it flexible when our kids were small (and I'm glad we didn't put the laundry in pre-pandemic, because I would never have anticipated needing a home office!)

I do like the idea of that pantry where the desk is for sure but all the rest just wait lets see it when you are in