Here's an idea for you:

It will require feathering new wood into the existing hardwood floors but with a good floor guy, that's not a big deal so I wouldn't let the floor dictate the lay-out, if you can avoid it.

I kept the fridge where you placed it in Option 1. I don't show this in my plan but if you pull the base cabs out several inches, you can make a standard depth fridge appear built-in. You'll appreciate the deeper counters you'll gain.

I ditched the peninsula for a galley type lay-out with an island (the island you have in your plan isn't large enough to be of much use, IMO). This plan gives you 3 prep areas: to each side of the range and on the island so you have lots of options to cook with your kids. I had to guess a bit at dimensions - for instance, I'm not sure where the mudroom door is within that wall - so you'll need to check my estimates against measurements IRL.

I added 2 seats to the island at the lower end for stools for your kids to use at the island. It would be something like this:

[Transitional Kitchen[(https://www.houzz.com/photos/transitional-kitchen-ideas-phbr1-bp~t_709~s_2112) by Toronto Photographers Stephani Buchman Photography

but with seating on only 2 sides, not 3. If you use backless or low-backed stools that can slide underneath the island when not in use, all the better.

The island is a barrier island because it's between range and fridge but there are issues with placing the fridge elsewhere in the space and this seemed the least problematic. It looks like it would right at the doorway to the mudroom if it was to the left of the sink. That means an open fridge could block that access. If it was where the pantry is, it would reduce the aisles between range and island and island and fridge quite a bit, plus the island would be even more of a barrier than it is in my plan. Lastly, there just isn't enough room to place it on the range wall.

I guessed at the length of your DR table. 72" is the minimum for seating for 3 on each side. You could go with a 42" x 60" table, still have seating for 6 and have 56" between table and island, which is just slightly less than NKBA's recommended aisle for back to back seating (60").

You'll notice I also changed the eat-in kitchen area. opting for a corner banquette and a round table so that you don't crowd the back door.

The 18" deep cab across from the table is your Command Central; a place to keep school papers, craft supplies, etc. Add a charging station behind doors to it so that you have a place to plug in phones, laptops, pads, etc.

Anyhoo, there's my idea for you.

I like the idea of moving the fridge, We have a similar layout with the fridge in the same spot, One question, what is the space between the end of the peninsula and the fridge? That to me would be a key measure which why we have a counter depth side by side. Have you thought about adding cabinetry in the eat in area? I will say since the dining room and eat in area are so close, there seems to be some opportunity there.

Thanks, Lisa!

I have been playing around with a long island, but decided I didn't have room ... seating on two sides of the end might be the key to making it a real possibility. There's a lot I like about this kind of plan.

It's kind of satisfying to hear someone else say there's no good place to put the fridge. That's been my sticking point!

We are going to put some kind of cabinetry/hutch in the space where you suggested a command center... for exactly that purpose... but probably a furniture piece rather than cabinets. And the dining room and kitchen tables were just placeholders- we have pieces in there now, but we're not tied to them. (And in fact, as soon as I run across a well-priced round pedastal table for the EIK area, I will snag it up!)

Carol - right now our fridge is on the wall btwn the dining room and kitchen - where I drew the prep sink. It's only 32" deep (incl handles), so maybe not true CD but on the shallow end from what I found.

In plan B, where I moved the fridge to the existing pantry, I'd have a 42" walkway btwn the fridge and the end of the peninsula. I know that's not huge but I thought it'd be do-able.

You're right, it'd be great to use the eat-in area as a working area. But that bay area is all doors and windows - which come almost to the floor. So we'd have to do some serious exterior modifications to put cabinets on those walls. We will likely add a shallow piece to the interior wall there (that backs up to the powder room). But I was leaning towards a hutch or buffet rather than regular cabinetry.

If you see more options, though-- please let me know! It's great to hear other people's thoughts on it.