I would also consider a 2-level approach or something similar that lets you make the transition to ground seem more gradual. There is also the idea that you may find you want to do a good deal of grilling the food outside, then eat inside, because well, it is just so convenient and you can grill under less ideal circumstances than required for outdoor dining. The utilitarian steps down to patio just to get to the grill will be a barrier to that. The problem with same level is that you have to use decking, then it does tend to force you to a large deck, then a large area underneath it plus lattice or whatever, plus maintenance--though new deck materials as you suggest make that less of an issue. So I do not want to discourage you from thinking about having a "stone" patio that is part of the yard. I think over time that area could be very nice and will feel more permanent--properly landscaped. So the deck idea gives a more immediate sense of its being just an extension of your kitchen and feeling like a "room", but the patio has the ability to feel "in the yard", as noted above. The problem with bi-level structures is you have to design carefully so that neither part is too small to be useful or it breaks up your party in the wrong way. So, for example, if you envision 6 guys or gals yakking around the grill, you want room for that in your design. I think the deck landing as shown in your picture has that dreaded ubiquitous tacked-on landing look that just gets you up and down, and if you do actually make just steps, I would try to put more into their design to make a more graceful descent to the yard--whether that is broader, curved, or something. Of course that might be too expensive, so part of the fun of the forum is that we can brainstorm about how you might spend your $$! Really, just giving you things to think about. Broad steps or more gradual transition type structures can also often be used as seating/dining (for kids) as long as is wide enough. You don't show anything about the exposure of the back of the house, sun patterns, etc, so any design needs to think ahead to whether you will plant trees for shade, use umbrellas, arbor, or what--meaning, leave space in yard, or plan layout of space.

@millworkman thank you so much for taking the time to read my novels and offer your expertise. I am breathing a sigh of relief that at least the frame is ok. We spoke with the owner and he agreed the deck was not up to par. We pointed out a number of issues with the decking and he is going to redo it as well as the railings and won't be using brackets. I think the fascia looks bad but he said it only comes in 8' lengths and I also thought it looked like plywood. What material would typically be used for the fascia? He was trying to pass the buck to my husband and I a little bit with the choice of materials such as on the posts. When we got his quote it was much higher than the others so we asked where we could shave down costs (and I'm sure negotiation is pretty typical) he said he could get wood from HD. He was defending the use of the crappy posts since that's what HD had and that really ticked me off. If he had just come to me and said the 4x4 selection is not up to par I would have authorized additional costs for him to source them from another retailer.

Crunching sound while walking on the deck of inground pool in the area of the walk in steps..Pool constructed in 1979..Kool Deck used then..Fiberglass steps. Decking remodeled about ten years ago...new coat of something.., new liner 2010..What can this be and what would be the remedy?

Oh crud. All you practical people who don't like split skulls and broken legs had to chime in :^) You can't really see it from the pic that includes the family room, but the wood is a perimeter there with carpet in the middle. We like that look and don't really want to put carpet all the way to the step (to provide the visual clue). Also, that wood strip (the one just below the step) is a high traffic area between the back door and door to the garage. We have friends (who have the same model) with the whole family room carpeted and that path on the carpet gets pretty dirty. So, we aren't in favor of any plan that puts carpet or anything else (e.g. bookcase) on that wood strip. We are replacing all of the wood on the upper level with the remodel (if we don't replace, there is a lot of patching that needs to be done because the wood is not currently under the cabinets. It was only $800 more to replace and when the wood was installed by the previous owner, it wasn't properly acclimated and there are large gaps). We can easily do something like Chicagoans suggested: using the wood pattern or stain color to define the edge of the step. Any ideas or pictures of this? Also, I measured the area behind the chairs to the step: 3.5 feet with the chair pushed in. 2.5 feet with someone sitting. 1.5 feet with a normal push the chair out to get up. 1 foot with a bug push the chair out to get up.