First off I wanted to say how useful this forum has been, especially for a newbie like me who knows nothing about home construction. Thanks you everything for contributing!

So below is the modified version of the floorplan we are considering.

Things We Like:

We love craftsman style homes. We both come from California suburbia (now living in middle TN) and just love of the charm and exterior style of craftsman homes. My wife also has a bad knee so we wanted something that is mostly single story. The stairs lead to a bonus room above the garage that will would probably use as my office/library.

We wanted to make sure we had a powder room for guests. Basically an easy to keep clean area so when we have kids I don't have to worry too much about how their bathroom looks. Speaking of kids, my wife wants the bedrooms to be near the master. Her preference, not mine but compromise is compromise. We also plan to have an unfinished basement that we can add onto later for more space. I know in the future her parents will be living with us as the recession has hit them extremely hard.

Also I have a thing for fireplaces that separate large living spaces. Kind of like a natural room divider. We want it to be fairly small as to not completely cut off the room but still to have some flair to make it a focal point for the eyes.

Things We Don't Like:

The kitchen. I don't what it is about it but it feels inefficient with the space. I feel we could get more out of it with a better design but for the life of me I can't figure it out. Maybe I am just over thinking it? Also the kitchen island...just something that feels off.

Lack of light in the home. We love natural light but I just don't think we are getting enough with this floorplan. Is this something as simple as skylights might fix or is it a more serious problem? We love some expertise on this.

Original Plan with added information:
http://www.monsterhouseplans.com/bungalow-style-house-plans-1866-square-foot-home-1-story-3-bedroom-and-2-bath-2-garage-stalls-by-monster-house-plans-plan38-502.html

I will list all the changes I have made to the original floorplan.

1. Adding french doors and having them face the front of the the home instead of a single door facing the side.

2. Creating a Bay Window in the dinning area to create more space for a small breakfast table. Also to allow more light in.

3. Changing the wet bar into a powder room.

4. Added additional storage in kitchen where the nook was near the added powder room.

5. Removed covered patio and enlarged the flex area/family room. Outside area will most likely have a large covered & screened in patio.

6. Moved the see through fire place back since more space was added.

7. Added interior access to the downstairs basement. Original plans only had access from the garage.