I'm not seeing what you gain by building a bench vs chairs. Our dining area is also small. We place two chairs against the wall and push the table right up against them. (The chairs would be where your window is) When we entertain and need more space we move the table out, add a leaf or two to seat up to 8 (limited by chairs not table size) When the party is over the leaves come out and the table get slide back.
Even if you go with a very narrow custom built table I think chairs are more functional. The problem with a bench is everyone on it is the same distance from the table. Some will be too close, some too far, and maybe a few just right. With chairs they can all slide in and out to a comfortable distance.
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