Yep, that's what I'd do, too. It's all fine and dandy to talk about
reworking the doorless doorway and calculating the size and location
of your cabinets based on the crown molding, but that's putting the
cart before the horse. Having a nicely cut small return will look
just fine and is exactly what molding and trim is supposed to do in a
house - mask all the little imperfections and gaps and make it look
perfect.

BTW, what beer did you have when you got home? This is tough thinking
stuff, so none of that wussy beer. You need something thick and dark
that you can chew on while ruminating on woodworking solutions. It's
better brain food than fish.

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After all this discussing,planning & thinking, I need something a
little bit stronger than beer now