This is a really awkward space! What about trying to build a unit into the corner which seems to be dead space. This could house the television and other bits like dvr,amp etc. The unit could then extend out towards the door in length and in height either up to the start of the window or up to the start of the blinds. I would suggest drawers for toy storage and books above. In this way you leave the windows clear for light plus it looks like you have a pull down screen so the tv would be out of the way of that. This arrangement would also hide all those wires and cables! Ikea have some good examples of storage which you could adapt or copy, such as Besta which illustrates the extended toy storage. http://www.ikea.com/gb/en/catalog/products/S39927155/

We got the IKEA shelves that are pictured in the butlers pantry photo I posted when we were on holiday in Melbourne, Australia. We don't have IKEA here in New Zealand! Hubby is going back over in May/June so will get him to get more of that sort of thing when there. We would pay about 4x the price for that sort of thing here in NZ. I need to work out what I will do now where the fridge was and there is the angle change (does that make sense?).

I read an interesting comment somewhere, where a lady invited a group of her friends over to lovingly point out all the problems they saw (through fresh eyes) with her home on preparation for sale. She said she was surprised at marks and damage that she had lived with for so long she no longer noticed them. We "owner built" a home previously, and when we came to sell 7 years later, we painted the garage and did those jobs that we had put off, and it became sad to finally see her at her best, at the end, when we could have been living in a completely finished home all that time. I read about a lady who decluttered her home, had it professionally cleaned (build clean, or bond clean) and had a professional styler do her home and she realised just how nice it could be and decided not to sell. :) ta

I would clean up first. Especially the stuff growing in the paving. Then get gardening with pot plants and start experimenting with different plants and the positions. See what you like and if you can keep it alive! Our house has the sun setting over the back fence and we've done a few inexpensive things to reduce that issue (most expensive were outdoor blinds around the verandah) but for most of the year we just don't want to be out there. It is hard work to keep the plants going in summer, there is a lot of sand due to the difficulty in keeping lawn alive and it is just bloody hot. So, that's why I'm saying clean up, start gardening small and see how you go before committing to structures that might not address the real issues you have with the yard. Just my 2 cents! :)