Here is a perspective view that might help.

So I've been thinking of shrinking the laundry room so that a small island can be put in the kitchen, maybe a 6'x3' island. Also Maybe putting the refrigerator in the hall on the wall marked "pantry and storage".

Not sure where the induction cooktop should go. Don't want and island style hood in front of the window or overlooking the living room.

It is not clear from the renderings where you have proposed sink, fridge, stove, etc.

Your powder room seems too narrow. Where will you put the sink?

Fair enough. Revised plan below with proposed appliance locations.

Part of the problem is that we have the option to make the kitchen bigger. Do we leave the kitchen space as is or should we take space out of the proposed laundry room area and powder room area to make the kitchen bigger?

Revised perspective. We were thinking the wall with the cooktop could have open shelves and a hood like in the link.

Here is a link that might be useful:

This is with an island. Though it just seems like way too much kitchen.

We do not know when they praise you did sink, refrigerator, stove, etc.
Your room looks too narrow dust. Where would you put the sink you want?

I would prefer the first layout without the island, especially because it would give the opportunity to use that remarkable hood you linked:))

Also if you shrink the laundry/bath area too much, pantry, bench area might loose its attractiveness.