I have to preface this with letting you know that I am all about consolidating and putting as much "stuff" in the smallest footprint possible. Even so, I still have way too much of said "stuff" and continue to add more (I know I'm in good company).
That being said, I'll throw a couple of things out there: NO WAY would I get rid of that island! I'm currently brainstorming a way to turn my work table into an island (I think I have it figured out - just need to execute) and looking for ways to add more "surface" area for cutting, embossing, etc.
I looked at the pics in your gallery, and there were a couple of things that came to mind (might sound harsh, but you asked
): I realize that your wall of paper storage is convenient and immensely workable for you, but I just look at the acreage of space that it takes up and how much open space there is between shelves that is (in my mind) "wasted". Could you perhaps add shelves in between the existing ones to double up? That way you could put twice as much paper in half the space. Alternately, you could flip the unit on its side so the "slots" are vertical, rather than horizontal, and put dividers between colors so you could multiples in the same slot. Either of these options would allow you to remove one of the units completely, or re-purpose it for some of the items that are on other shelves elsewhere in the room.
I'd also take a good, hard look at what is on those other shelves and see if there is a different/better way to reconfigure it or eliminate it (I've done a lot of purging over here).
Could the "project boxes" live somewhere else until you're working on that particular project? Since they are all clearly labelled, it would be easy to, say, open a closet or something to grab the appropriate box...
Maybe things could be moved around a bit. If you consolidate the paper storage and re-purpose the other unit, you could probably eliminate shelves from another wall that previously housed whatever you moved over to the second paper unit. Alternately, if the paper was consolidated and you didn't need the second unit at all, it could be removed from the room and some of the shelves could be moved to that wall.
I'm thinking that perhaps - if you are able to gain enough free wall space - you could put the card catalog against the wall so you are looking at a non-drawer side of it (looking straight on), and the drawers would pull out to the left or right. This could only work if you have enough space to stand next to it on either side, of course. Also, I'm not sure which dimensions your measurements refer to - is that height and width? Or width and depth? Regardless, depending on how high the unit is, you could probably put at least a few things on top of it - perhaps even one of the smaller shelving units themselves.
I don't know if this is all clear as mud, or if it makes sense, or if I even answered your question! Anyway, that's what came to mind... Good luck with that! I'd be all over figuring out how to add a card catalog, though, if I came across one