What would you do with this space?

[Renonewb1e]

We want to open up our lounge & kitchen to create a kitchen diner, but DH is worried the space is too small (personally I think it’s fine).
We can’t afford an extension right now, so wondering if anyone else has some good ideas.

the dashed walls are walls we are currently looking at removing, we could potentially remove the wall between the kitchen and utility too, but I can’t visualise how that would work.

I’ve attached an image of the floor plan (sorry for the rubbish drawing - I’m no architect!), and an idea I drew up on DIY kitchens (dimensions are slightly out but you get the idea..).

Only thing I have noticed, is that the hob is in the breakfast bar. I'd suggest moving it somewhere else I lived in a house with the hob in the breakfast bar and had kids. We ended up unable to use the bar at all, as it was too scary having them so close to the cooking.

Oh, I grew up in a house with the hob on the breakfast bar & it was never a problem so I didn’t really give it a second thought.
My son probably would try to stick his hands in the pans though…I’m not really sure where else it could go!