I'd ditch the dining set and get a four chair "deep seating" set with a round table. Sometimes listed as "conversational sets". Maybe an ottoman or two. A deep seat chair and an ottoman? Definitely nappy-time. My wife bought a set of four chairs and a table years ago where the table has a removable center section so the table can be used as an occasional fire pit. We have a real fire pit, so we never use the table for that. It'll be better for relaxing, conversation, and if you want to eat out there, you can still do it. It's just a more informal setting for eating.

I don't understand why you would extend patio/porch to the right nor exactly what you mean by "build a porch that overhangs it" ...?? You might include a quick sketch that explains your intent and also say what the objectives of doing this are. Based on the existing roof line, I can envision such a proposal as being major and expensive. Per proposal #1, you mention constructing a retaining wall that ties in to the porch. I think we would need to see the area flanking the house, as now we're only getting a hint of it. Almost without exception, when considering landscape improvements to a home, it is important to consider the space that flanks the building and not just the space directly in front of it. The best way to show this is stand roughly in line with the center of the house (as you do in your second picture), pivot the camera leftward in order to see that portion of the yard, including the leftmost 1/3 of the house. Then, pivot rightward and take a second picture aiming straight at the house. (You already have this picture.) Then, pivot further rightward and take a third picture that shows the right-most 1/3 of the house including the right portion of the yard. These pictures are all taken without relocating, from the SAME viewpoint. Moving to different locations to take them destroys the possibility that they can be "cut" and "pasted" together in order to make a panorama that does a much better job of explaining how features of the property relate to one another. Sometimes people try to condense the effort into a single computer-generated panorama, but this does not work because it radically distorts the images and removes too much of the detail. @Emmarene, I think the door only looks off center because the point of view of the camera is lined up to the right of the door, not with the door itself. Phil, in raising the porch, you'd need to shorten the columns or replace them. Just guessing, but they look like standard 4" x 4" wood posts that are clad with "one by" material. If that's the case, they could be easily cut while you temporarily support the roof overhang.

I think the wall color should stay the same as the rest of the house and the blue accents are quite charming. Is there something specific you don't like? I am not sure if the art piece and the white piece (shelf cabinet?) have something to do with the culture of where you are and need to stay but if they don't I would start by taking them down. Then I would give the whole area a good power wash to clean it up. I would add a fun out door rug. With a seating area. Then bring in potted plants . Not sure what grows in your area but Figs, ferns, palms all come to mind. Some bright ceramic pots for the plants as well as some bright ceramic lanterns or candle holders Bright outdoor pillows. With your hanging lantern you have it really has a Morrocan feel and with the bright door and shutters I would move forward with that. Lovely space!

Cute! Here’s the tutorial: http://shabbyteaparty.blogspot.com/2013/05/toilet-paper-roll-july-4-rockets-and.html