With the breakfast room right there almost within reach, why do you even need the island seating? It will totally render that space unusable and crowd it if you try to have both a table and an island. It's not in the right place to provide a usable prep space either.

Get rid of it entirely and concentrate on making the breakfast area work better. Maybe a banquette that extends outward from the refrigerator on the left. If you find you want more work surface in the kitchen, then add in a mobile cart.

Our breakfast area is our dinning area, so i would like to have a nicer table there. So an island would be used as a everyday table, prep area when cooking with kids (few times a month) and prep area for bigger projects. I feel like we would ruin our nicer table if we would use it for everything.
What do you think?

I think if you want an island that's usable, with seating, and to use the breakfast area as the main dining area, that you need to significantly alter this home plan. It doesn't lend itself to what you are asking it to do.

If you want an area that can serve as an expandable formal dining area, then you want one that's much larger than the breakfast area, and one that's not impinged upon by the door swing to the exterior and the wing walls.

If you want a kitchen with a usable island with seating, then it needs to also be much larger or not be a U shape. The bit of wall that has the oven on it could be eliminated and the island shift down into the kitchen, and it would be more useful as prep, but the clearances would still be tight with seating there and at the table.

You should be looking at home plans with an eye towards the furniture size and placement, as well as the people size and their needed walkways. This plan fails on both of those counts.

I did consider eliminating the oven wall, but then i would have to have a range (which i dont prefer and i have no room for cofee maker, etc. The area between the range and the sink i plan on using as everyday prep area, so i want to leave it clean. The island will have enough for 4 people (it is 5.5'x5.5')
Whats wrong with the door? Where would you put it?
I dont do much formal dinners so i dont want the table to be too formal, just dont want to use it for everything.
How would you redo it?

If you want your stated needs to work, then the separation wing walls between the living area and the dining area need to go. They won't work if you need to pull out the table and add the leaves. And it creates that awkward little unusable space where you have the bookcase. And to have room for both seating in the kitchen and the dining area, the shape of the kitchen has to change. Eliminate the wing wall there as well, taking it back to 27" so that it hides the side of the fridge, but still allows it to open. Putting the wall oven at the other end will let the cooktop be framed by two tall elements and be a nice focal point from the dining area.

Doing a banquette keeps the everyday seating cozy, but removing the wing walls allows the table to add in leaves and expand when you have guests or more kids.

GreenDesigns thank you very much for putting your time into helping me, i very much appreciate it.
-Right now there is 16' for the dining table to expand, is that not enough? i dont even plan on buying that big of a table.
-I like the idea of arch to separate the living room, i feel like it gives me places for piano and a craft table for kids on the other side. I plan on building in the books into the stairs,
-Are you sure the original kitchen is unworkable?
-I like the idea of banquette, but will it not make it too casual? i definitely might do that.
-On the pic you drawn the island will be nicer, but seems like the kitchen will become tiny, with little cabinets and not enough prep area...?

That's why I said that your entire house plan really needs to be reworked to function as you envision it. There isn't enough room to have a kitchen with a seating island and a main dining area in the space you have there. That's why I drew it as a peninsula. And expanding the table lengthwise into the great room runs it into those wing walls. That's why I eliminated them. There isn't room for a piano between the great room and the dining area either without crowding both spaces entirely too much. I'm not fond of that corner fireplace visible from the front door as a focal point either. If it's to be the "end view" destination from the front door, then it should be straight on, or maybe be a view of a windows. There are a lot of other issues like that about this plan.

You need to reduce your expectations for this plan, or else move to a larger plan.