What if you mount the tv in the corner and then place two oversized arm chairs (possibly with cute footstools?) facing the tv with their backs to the kitchen. Depending on the floor you could add a nice sheepskin rug to pull in the space and possibly a little side table between the chairs.

You could always put a couch there in the same position instead by you wouldn't want it to be anything too clunky. It's be better if it had a short stylish back. Maybe something like a mini-Chesterfield?

My husband and I have never shied away from NOT putting our furniture against the wall - and I wouldn't in this space, either. Can you put the couch parallel to the kitchen island? What I mean is that the back of the couch would be approx 3' from the bent edge of the kitchen floor. Then you can put the TV in the opposite corner. Yes, the back of the couch would be to the kitchen but if you have arm chairs, those could be easily re-oriented to face into the kitchen if that were a concern. Good luck - this looks like a fun space to have a good old fashioned furniture-pushing-around party in!

Put the couch on the diagonal to match the angle of the kitchen counter, creating a walk space between them. You can put the TV in the corner or mount it on one of the walls. If that feels too closed off to you, put the couch perpendicular to the wall that doesn't have windows, facing the window wall in the living room area. Mount the TV on the wall between the window and the corner, and use a rug to define the space as the "living room."

If possible, I would mount the TV on the wall between dining room and living room windows on an extending swivel mount. You could extend and pivot the TV to face the couch when watching and push it back against the wall when not in use. This depends on the size of TV you have, though, as huge screens are too heavy for this type of mount, I think.

TV in the corner, then angle the couch (with its back to the counter). Basically what MissKatieMay said, only a few feet from the counter. This will solve your TV-viewing needs, and provide a clear path across the main living space.

I can't stand when developers put the token kitchen island in a small apartment. With that said, I'd float the sofa parallel to the island facing the plan southeast corner of the living room.

If you're feeling adventurous, place the couch as I suggest above and rotate it 90 degrees so that it is perpendicular to the island. The couch will now be facing the plan northeast corner of the living room. This will also create a separation between the living room and the dining room.

I would place a wall at the back of the kitchen counter. It would serve as a divider between the kitchen and the living/dining room, plus it would create a good location to mount the tv. Having the tv at that spot gives you much more freedom to arrange your furniture. Added bonus would be that you could use the other side of the wall (facing the kitchen) to hang kitchen utensils.

Put the TV on the long wall and the couch facing it with the back to the kitchen. If the TV is on the long wall, you'll be able to see it from the kitchen and the dining room as well.
Or put the couch in front of that window (if the couch has a low back, that should work) and the TV in the little corner (top right on your floor plan).
Or do what everybody else says and put the TV in the corner next to the window and the couch parallel to the kitchen island.
Or get rid of the couch and float a bunch of comfy chairs in the space.
Or you could get the IKEA Expedit media unit and float that in the room as a room divider (not sure how that would look from the back though.... ).
Or put the couch on the long wall and the TV on the kitchen island (just kidding).
I think you will be pushing things around a few times before you are happy :-)

If your couch is large I would suggest putting it along the wall and getting a TV console to float opposite of it, there's no reason the TV needs to be on the wall. you can get a narrow one so that the traffic flow to the dining area isn't impeded.

It's a great space! Hang your TV on the long wall, with a long low media cabinet beneath it. Put your couch in front of the window, with two chairs across from it. Add your tables and a rug to define the space.

I have to agree with a lot of posters that you should angle the couch parallel to the island and put the tv in the corner. I would add, put a low bookcase or a skinny console table behind the couch and move the couch more in to the living room, so that from the kitchen you are looking at the table or bookcase, and not just the back of your couch. chairs on either side (creating a diamond shape) and you're set - plus then you can watch TV while you prep dinner!

I have a room with a similar island......... I put the couch (or perhaps sectional in your case) on the wall(s) opposite the island. I have an old beat up cubboard that is about 6 inches taller than the island with the TV inside it........looks great!!!!! Best of Luck.........Ned

MissKatieMay has it right. This is a space set up for entertaining. Definitely put the couch facing away from the kitchen and parallel to the island, mount the tv in the southeast corner on swivel. The seating area should be defined by a rug.

Might be a longshot, but could you mount your TV on the divider wall by the entrance? Then you could place a couch along the wall with the window, so you see the couch as you walk in the room. You could also "extend" the window by putting curtains along the whole wall behind the couch. The, you could put a pair of low chairs opposite, so they aren't having the TV, but they aren't blocking it either. This might even allow for additional seating along the long wall.

I would put the tv facing the kitchen - but I would not put the couch parallel to the island bench as diagonally placed couches can be a bit odd - I would place the couch just above where the writing for living room is (if that makes sense) - then I would place an armchair in front of the island. I wouldn't worry about the couch blocking access to the rooms behind as it looks as though you have plenty of space there.
Or if there are two couches I would place them at right angles to each other - the first one where I mentioned and the second one facing the long wall. Place a console behind the couch which backs the dining area.
Please don't put your tv in the middle of the room.

here's a thought, what about putting the tv ON the island?

You could mount it on the cabinet below the counter, then face the sofa & chairs perpendicular to it facing each other.

If the view of the TV isn't good, you could "cheat" them out a bet so they form a V with the open end toward the TV/island.