The picture looks like the dinette is in a slide. Looks can be deceiving though.
If it is a slide, I don't think I've ever seen wood flooring in one. The obvious problem as OP suggested is the transition between floors. If its fixed and doesn't move, there might be ways to trim around the height difference. If it slides though, it will be harder to do anything with a hard flooring that looks good and will hold up. I've seen lots of vinyl with wood grain patterns in slides. They usually extend over the slide edge and have a reinforced edge sewn to the vinyl kind of like they do with carpet.