I'd recommend increasing the overhang to 15". That will be much more comfortable and it looks like you would still have a very large island. Even though 40" works for you, you're putting a lot of money into remodeling and in the future you may have others helping in the kitchen (friends, spouse, kids) or for resale, I'd recommend increasing the aisle of the working kitchen to 42" from countertop to countertop (so you'll need 45" from cabinet to cabinet). I'll let the gurus on here comment on the overall floorplan.

actually by making the island thinner at 40 inches instead of 48”, it makes the working walkway space (countertop to countertop) ~42 inches which is perfect

I can't read the plan

Other than the text on the left side, it's difficult to read the plan. Can you post a closeup of the Kitchen with clear measurements, etc.? They're too small and blurry in the original post.

Leave the original and add the closeup in your original post. (Use the Edit "button" at the bottom of the original message to edit your post and add the picture.)

Not a pro - folks on here tend to say the narrow spice cab by the range is not ideal - are you 100% committed to the waterfall island? I think they are touch overdone and look best in super contemporary spaces but just personal opinion

Always show the proposed Kitchen within the context of the house so you can first look at macro scale before micro scale. Hard to do with cabinet plans, so I superimposed them:

I thinned the island to 36" before I read your 40". Also slid the stove over, but didn't understand centered yet 24" open cabinet to the right, so I just show a 36" cabinet which leaves about a 30" cabinet between ref.

A large beam soffit is assumed from removing the wall, which would still dictate how far the kitchen can extend and how close the Dining table can be (showing a 42"x60"). The Living is losing about 8' and has the offset fireplace now, so lay out furniture.

I updated the photos, hopefully theyre more clear now!

There is a whole other post about this kitchen with lots of questions asked and answered.

https://www.houzz.com/discussions/6504741/is-it-weird-to-have-island-end-after-back-counters#29570626

Too many hard straight edges

I would increase the overhang a bit at the middle and reduce it at the ends giving it a long curved edge

Terrible.

I would want the aisle between island and wall cabinets to be much bigger. Ours is 52” I believe and super functional.

With your latest plan, you now have what appears to be a much smaller living room with an off centre fireplace.