Help with meals and dining space

Hello,

Looking for some advice on what to do with the meals and dining areas. I think it would seem weird if i had a small round table in the meals section and then a larger dining table in the dining section. They seem way too close together. I was thinking of installing some shelf/storage space around '2' and forgoing a dining table. Keen to hear some other ideas.

I would be removing the width of the open door in the second image to open the space up a bit more. The ugly aircon/heater is no longer on the wall fyi.

Thanks!