I think it's quite good. What catches my eye: I would give the bathroom and bedroom about 15cm more depth. The children hardly notice it, but in the bedroom you could then comfortably place a large sideboard or another wardrobe against the wall. Otherwise, the floor space would be far too tight for me. I would move the toilet together with the dormer window closer to the bathtub to create space for a large laundry basket. The 40cm behind the door are probably not enough and are already used for a shelf with towels and detergent. With 5 people, the machine runs almost constantly, and in my opinion, the space is far too small. Basically, it’s a pity that the washing machine & co. are in the bathroom, but I don't see an alternative here without tearing down too much.
On the ground floor, my biggest problem would be the direct access from the dining room to the guest toilet. I also find the arrangement of the sanitary fixtures awful. I would enlarge the bathroom slightly and arrange the fixtures in a row. In addition, I would create a separate hallway, so that there is an additional separation from the guest area and noises + smells don’t directly reach the dining table.
I don’t know if this has already been discussed here and I don’t want to read everything now, but you lose quite a bit of space on the ground floor because the stairs are not aligned. I assume, since the neighbor is building two stories, it would hardly have been a problem to implement a dormer for the stairs, right?