We are in the process of having wall knocked down between kitchen and dining room (which we use more as a 2nd reception room for children etc) at the back of the house. The kitchen has been extended previously so it sticks out beyond the dining room by about 4' - end result will be a room that is about 24' wide by 12' for most of the room, with it slightly longer (about 16' into the kitchen extension).
The idea is that it becomes more of a family room - more sociable when we have people over. Kitchen (staying put) is in the kitchen extension bit, with a row of base units at the far right hand side against the outside wall. Am planning a little island unit, a dining table (with benches) and a small sofa with TV and cupboard to house games / small amount of toys. Does that sound too crowded? If you have a kitchen diner, do you have a sofa in there too?
Have a separate lounge at the front of the house, 3DCs (aged 4-8).