I think cabinets along the DR wall can certainly work but of course depends on the dining table size and your needs for dining . You could maybe bdo the Ikea uppers wall mounted at the right height and do the span of counter if the dr is not very wide. those uppers are just 15" deep

I have a extendable dining table that is only 38" wide, so I think there should be plenty of room for whatever option works well. Having a big formal dining room isn't a huge priority as the family tends to eat at the counter anyway.

I definitely think you have room for storage along that nice large wall - that should work well

while i appreciate the convenience of counter space to grab a bite, I think a comfortable and gracious table/chairs is way nicer for regular meals - doesnt have to be formal but it is more comfortable and more conducive to conversation than the counter