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.

I like @kelly's idea of picking a lovely fresh color of paint for the door. You can then bring it down onto the stair risers. Either a solid color to match the front door, or go wild and add some decorative elements to the risers with stencils. Or think of staining the door a great color and coordinate the stair railings and risers. I have an idea book put together for just such project that might spark some ideas for you. http://www.houzz.com/ideabooks/16700983/thumbs/Kathryn-Delany-s-Decorative-Stair-Risers

Okay, so I like it simple and modern, big stripes, big blocks, love this and this I really like uncluttered look. like this to https://www.houzz.com/photos/murphy-beds-modern-rendering-phvw-vp~24435627 , and I like my dark grey's and browns not to mention light blues, yellows, oranges and reds clashy aye.(not sure if these colors will work with the wood, really like the idea of staining the wood darker to more like this https://www.houzz.com/photos/rubin-residence-contemporary-bedroom-san-francisco-phvw-vp~5202610). But really interested in your ideas.

Hi, Both comments above are what I would do. A Roman blind in the same fabric as your main window will tie the two different windows. See the picture, where I had a small window in an awkward space in the dining room, next to a large window. Keeping the same fabric helps continuity where the windows are vastly different sizes.