Having a tiered layout would be a great idea to take advantage of the view and provide some areas of focus through the backyard.

Well, for lack of a better idea, since you find it a drafty little space. I'm assuming the draft comes in on the right? Most of the necessities in the area are located of the left side; i.e. vent, thermostat, light switch etc. What I would do I think is caulk up the drafty spots, maybe even add sized poster board wrapped in batting I covered in a gorgeous fuscia with diagonal grosgrain ribbons every which way covered with a heavy velvet to be attached to the area above & below the window. (Of course remove the drapes that are hanging in there). This for the purpose of using it as a pin-it board for notes. Attach a table height board covered in felt to carry across the full width of the little room. Leaving just enough space for a comfortable little antique desk chair. Paint the back wall a bright cobalt blue, paint the ceiling a silvery pearlescent white. Find a way to attach a clip-on task lamp. And stretch a heavy duty enough wire across the top of the opening and complete it with a heavy doubled velvet drape with a drooping valance. Place a swag with fringe & jewels on it to be closed when not in use. Voila intrigue is yours!

My ex-husband and I had an issue with a large window that looked out over a sidewalk where people were constantly walking by and looking directly into our living room. We solved the problem by using window film that was one-way so we could see out but it was like a mirror if anyone tried to look in. There are other varieties as well. We still got all the sunshine and light but didn't need to worry about whether or not the neighbors could see me watching tv in my nightie on a sick day...It also meant the door to door salesmen couldn't look in and see that I was home when I didn't answer the door. http://www.gilafilms.com/en/privacy-window-film.aspx#.VOuUBS5vksQ

Your layout for you kitchen looks really good and would fit well with the mixture of black and white cabinetry. With the lament bench top, we would suggest melamine (entry level cabinetry) or acrylic bench top, which can come in high gloss feature or matt. The matt surface would go lovely with your choice of bench top, and acrylic is also a affordable cabinetry material. Below are some examples of how Reno4u has incorporated both black and white cabinetry together, without making it to dominantly dark. We feel as if these examples would be perfect for your layout, and depending on if you want more black cabinetry or white you can go either way. This design above is an example with more black than white, can be made matt or gloss with different handles/splash back and wallpaper. With a u shaped kitchen similar to yours, however from the pictures you provided your style may include different design below the island bench. Another kitchen designed by us which shows more white than black, with a bar built in which may suit your design better. We hope this helps you, please feel free to call us on 03 423 9067 and we can provide a free quote for materials and kitchen design, and help you finalise your design further. :)