Instead of doing one large fixture like you have now over the island, I'd replace it with 2-3 smaller pendants.

Any of these could also be interchangeable with the over the table options for the kitchen too!

As far as the remaining lights, I would personally convert all of those into recessed/can lights (4 lights on kitchen ceiling, hallway/in front of stairs lights/fireplace track light). You might even be able to just remove and cap the track lighting in front of the fireplace because you don't really need it.   If you did want to do a flushmount instead of can light on the hallway/stair way area I've listed a few options below:

I love all of the couches/chairs/rugs you have already for the living room.  A few things that I think we could add to pull the space together:

1. built-in/ cabinet for the large wall with the television

2. curtain panels and modern curtain rods (some options I've included at the end of this post: velvet panels, linen blends, or neutral prints)

3. modernize the fireplace with a more craftsman style mantle/unique wood treatment above fireplace (some examples in the photos below)

4. Maybe a console table/sofa table behind the couch with 2 lamps on it?

5. Mix in some floor lamps, eclectic side tables, and maybe a unique coffee table?

I loved the overall style of this space for your living room- midcentury but eclectic.  I'd love to incorporate a similar floor lamp or two into your space and maybe a gallery wall like they have above.

Loved the clean + modern look of this built-in for the open wall in your living room- especially with the mounted sconces on top.  Another option for your layout would be to mount the television above the tv and then rearrange the rest of the furniture around that (couch could go to the large, open wall; chairs could angle facing towards the fireplace).

Another eclectic midcentury space with some fun pops of color.  I love the lamps and side tables they used in here and the light fixtures.

Another super simple built-in that I love.  The television is actually mounted to the wall and then the shelving is built around that with some closed storage and some open shelving (great for displaying smaller items too).  I think a style similar to this would fit in perfectly with the craftsman feel of your home.

Loved the mix of old and modern furniture in here and the pops of color.  I also thought about maybe doing a statement wall in a deep color like this (maybe that large open wall where the tv is?)

Another built-in option that I liked with contrasting back and simple, clean shelf styling.

Love the overall color scheme and styling of this space and the eclectic wall decor- would love to do a fun mix like this above you fireplace.

I love the midcentury floorlamp in here, accessories, and bookshelf.

One more built-in idea- I love the addition of a rolling ladder especially since you wall is so tall ad open.

I liked this mix of old + new in this space and the overall accessories, color scheme, and styling.

I love the stone on your fireplace but feel like the mantle could go even further towards the midcentury/craftsman style and even be a little larger.  I love the look of the fireplace mantle in this room and all the accessories they have used on it and on the coffee table.

I love how bright and open this space feels with all of the white- I think a white or light gray on the walls would really modernize the space.  I also love this unique finish around the fireplace and think we could definitely do something similar on the wall above your fireplace (like a vertical shiplap or modern wood panneling of some sort).  I really like how they dropped a pendant light from the ceiling above the fireplace too and this is definitely something we could do since you already have some wiring there for that small track light on the ceiling.

I love the idea of this mid-tone wood look if you do a built-in on the open wall- it feels super mid-century and definitely fits the craftsman look of your home.

Really love this eclectic collection on the fireplace and accessories that they used to style this.

Love the gorgeous coffee table, layered rugs, and modern wall art in here.

Neutrals are for wall color options; darker colors are for accent wall

Click on any item to see more details/pricing!

I'd love to make this space more of a multi-use area like you mentioned, incorporating a little seating area.  I think we could still keep your dining set in there but just rearrange a bit to make it feel less traditional.  See some of my ideas below:

I love the idea of adding a little seating area by the window in this room- could either be two chairs or a small settee.  We could then rearrange the rest of the furniture around that to open up the center of the room.  I like how they have tons of plants in here too and think this would be a great space to display all of your plants.

I love the clean, modern feel of this room and the little bar area they have set up in the corner.  I would love to expand your bar area on top of that buffet and add more items and maybe even some open shelving above it too.

Some bookshelves are another idea for this space especially if you want to give it more of a reading nook feel- we might even be able to style that china cabinet as more of a bookcase too.  Love the overall minimal + midcentury decor above and how they incorporated the plants too.

I love how this space mixes the antique and modern furniture together, which is what I'm picturing for this room.  I also like how the dining table set up to the side feels cozier and functional, and less formal- I definitely think we could style your dining set more like this. 

I loved the dramatic but eclectic feel of this decor for your front room.  I think since this area is kind of separated from everything else, we do have the opportunity to do a bold color, or more striking decor in here if you wanted.  I also love the placement of this little settee in front of the window- a good option if you decide not to go with chairs.

Another cozy corner with a reading chair and bar cart set-up.  I love the dark color on the walls and the oriental rug.

A good mix of modern and traditional furniture, in a light and bright space- love all the plants too and the overall furniture layout.  

A cute set-up with a settee and a small dining table + chairs- I love the pops of color too.

If you wanted to replace the existing furniture, and make this more of a true sitting room- I love this set-up.  They fit a lot into a small space but it feels cozy and not crammed.  I also like the bar cart and how they stacked the books in the corner.

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A more traditional antique piece of furniture like you have but styled as a bar cabinet- which I love!

Another small dining area that feels casual and cozy- less formal.  I love the overall decor in here too!

A cool mix of modern artwork/accessories with traditional furniture- I love this look!

Simple, clean, and modern little sitting area with a bookshelf.

Another more bold and dramatic option with deco-style wallpaper and vintage furniture!

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Another example of a small settee- I love this midcentury style in a corner with a floor lamp and small table beside it!

I'd love to create the sitting area centered around the window kind of like this- I love how cozy this feels with the overall styling and layering.