I've made some good progress on my kitchen island! (Again, with loads of help from mom and dad!)
I picked up some stain and sealer for my counter. After much discussion, pondering and soul searching (or something) I decided to stain the counter with a standard wood stain (Cabot's Penetrating Wood Stain in Pecan) and then seal it with a wax-free shellac that is safe to use on toys.

There are many opinions and options out there for finishing a DIY wood counter. Since my counter is not intended to be used as a butcher block/cutting surface I felt that this option worked best for my situation. I might change my mind and do something else to it... but for now this is what I'm going with.