Ozbern: we had a similar dilemma, lovely backyard and then they started tearing down bungalows and building four story townhouses all around us. I built a single depth pergola along the back property line, the beauty of this is not only the privacy, but it brings the scale of the yard down to make it feel more intimate when we are outside. We also added a 10' x 10' (little over three meters) pergola right up against the house where we had a wall of windows. Will try to find that photo too. We have coral vine now growing in it. Dies in winter, comes back in spring. You can always do more contemporary details if this is too casual.

My friend has an outdoor kitchen and in winter, it becomes useless. One kitchen is enough for me!

I was thinking a structure around the fireplace so you can still entertain and keep the fire going without worrying about the wind blowing it out. I also think some new grass would be what you need to brighten up the area as it's looking a bit dead (but that could just be due to the cold weather)

I think the most impact would come from a well placed, well sized Acer. You can get them grown fairly tall already, Tamata have them and I'm sure there are other places. I'd get one that grows to no more than 3 metres (although check this against your property as scale is hard to gauge from photo), and has changing colours of leaves/bark. I'd place it towards the left of the property, looking at it. That will give some balance to the windows, provide some privacy but not obscure light. It wouldn't be a cheap option but cheaper than painting the house, and would need almost no aftercare. Then some easy care phormiums in the border underneath the windows. Both phormiums and acers come in a range of colours- limes, bronze, purples, oranges, dark reds etc, so choose what you like. The acers are soft and provide movement and variety, the phormiums sharp and provide solid consistent structure. This echoes the plants that can be seen already behind and at the side of the house and should make the hour 'sit within' its environment instead of bing perched on top of it. Also, the edge of the driveway- I would dig a border to just beyond the seam of the gate, lay down a weed mat, and put some stones in there. The garden centre has a range of them, in several colours from white through green red greys and blacks. If you chose reddish (or reddish and lime/orange) tones for your acer/phormiums, I would prob buy a large specimen plant in a pot for the top of the driveway, at the eight hand side of the garage, to link the colours. And maybe paint the front door and have some pot plants there that tone in too, especially in the area near the path that can be seen from the street. For a cleaner line I'd consider painting the lower part of the decking (the vertical frontage) to tone in with your house.