At my old house, the laundry basket was on the 2nd floor, the washer on the ground floor and the dryer on the 2nd floor. 2 flights of steps up and down all day equals not fun.
I also thought it was a little weird but I guess when you consider the plumbing issues, it does make sense to put it close to other water devices (although I'd probably prefer it in the bathroom if that were the case).
I kind of felt the same as you initially but like the others pointed out, most people don't do a huge amount of sorting, folding, etc in the kitchen.
Just as a heads up if you're not used to doing laundry in the UK, if you guys have trouble keeping up with laundry in the US, you might be in for a shock. The washers are about half the size and take (at least) twice as long to wash. Laundry is (at a minimum) four times harder to keep up with.