I would like to see a more zoomed out picture, maybe a coupel from different angles to see the entire backyard. From the limited field of view, hard to give a good brainstorm. I would like to see other landscaping, seating, planters, trees, etc.
dwarf mondo grass which can take the heat, can be walked on yet requires no true maintenance. It could be planted close in such a way to fill the space and almost look like a grass filled area.
You can google mondo grass, dwarf mondo grass. Also look up dwarf Mexican petunias. The dwarf MP's are hardy, purple flowers, easy to grow. Just like the Mexican heather -- But the MH will freeze back and is branchy, needs trimming. These are also little flowers. Again, check your planting zone to be sure you get the right plants for your climate.
Our dwarf mondo is about 6 years old and has never been "trimmed" in anyway. They are each about the fullness of a saucer width, just fluffy round. If you plant them close enough to each other they fill in quite nicely. They'd also make a nice edge.
If travertine is not in the budget then perhaps just a 5' or 6' wide plain brushed concrete L shaped extension. Then perhaps a grass strip with some river rock against foundation with some raised planters along the house edge too soften that large brick wall.
Are those small lower windows just vents to a crawl space?
We had 7 steps down to the yard before we started. She wanted to be able to look at the pool but not through the railings. The compromise was to lower the deck to less the 30" to meet the code. This allowed us to meet the code without a railing to look threw. You could put a landing before the pool deck then steps.
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