You have done a beautiful job of tucking plants into the crevices of your retaining walls. Your house trim color is perfect -- just slightly lighter in hue than the retaining wall blocks. First I would paint the big, flat gray wall slightly lighter than the blocks and slightly darker than the house trim. The concrete walk and stairs I would stain a mottled blend of the blocks and the house trim colors. Next would be to paint the railing black or the house body color. Now, think of the following as creating a light, airy trellise structure from the walk-level face of the (currently gray) wall to about 7' above the top of the wall (using 6x6" posts attached to the wall) with a corresponding line of posts sunk into the terrace level 2' in from the outside edge of the wall-attached posts. The inside posts would be about 6-8" higher than the outside posts. Put 4x4" wood to attach the outside line of posts to each other and do the same with the inside line of posts. Run wood pieces at the top of the two lines of posts from the inside line to the outside line at about a 45 degree angle. They would be cantilevered up at the terrace level. Across the top of the angled pieces create your top trellise boards which run parallel to the two lines of posts. OK. There you have your basic structure. You might want to extend the structure around to follow the street side of the terrace. You could then follow the suggestion of reom10 above about creating a bench-planter on the terrace side. Your spacing of the boards parallel to the gray wall and attached to the outside posts would determine how private you wanted your terrace to be. You might want to soften the terrace "floor" by using something irregular like flagstone with groundcover plantings between the stones. From the latticework on top of your structure you could hang seasonal flower baskets. Plant vines to go up the trellis and spill down the wall. How about planting a row of tall, narrow shrubs along the neighbor's fence above your terrace to help add to your privacy and make your yard feel less 'structured'? Or, how about patio table/s with umbrellas to block your neighbor's view? Anyway, you have a fun project ahead of you.

If you are planning on having this built you need to discuss it with the carpenter and have him draw up plans. If you are looking for premade cabinetry it is doubtful you will find something that will accommodate the pole. We would be able to make further suggestions once you have a plan for the cabinet as far as storage and design. From what you are looking for I suggest a full wall built in cabinet customized for your needs.

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Why don't you live in the house for a while and get a feel for things. The curtains are bright but if they are still good quality / newish it would be a very expensive exercise to replace them (I have just spent a few thousand just on three rooms), you can always add a few red cushions or a red toned throw over your existing couch or a rug with a red tones in to it, to tone the red down, if required. Repainting the walls is cheaper than replacing curtains and a piece of art with red tones may also help. As far as furniture is concerned it would depend on what you like style wise. Why not send us a photo after you have moved in. You may find some of your concerns disappear once you are in and settled.