Instead of a long strip of yard and a long strip of patio, if do a wider patio on the close end and a wider garden space on the far end. On the patio, you can do a small bistro set. On the garden side you can use lattice to hide the trash and train vines for some height. Or if the path from one end to the other is necessary, add a feature, some plants, and a bench so it can also be enjoyed.
http://houzz.com/photos/2922162
http://houzz.com/photos/42905
http://houzz.com/photos/4966725
http://houzz.com/photos/1224018

Love the small patio.

when laying out planting beds or a path, make some diagonal curves to break the long space. make use of vertical space with vines on a trellis or lattice panel. you can use those to screen trash cans or small storage spaces. instead of a large shed build a fence wood closet that looks like a gate to another garden room. make a small deck or patio near door with a small chimera instead of a large firepit and maybe a small vertical water feature. if like veggie gardening start small with a few containers or raised bed in the far end of the yard. good luck designing a small but multifunctional yard.

How about a garden? You could get a small footprint vertical garden growing along that left wall, and still have room for a small patio, furniture, and grill.

A chimera? Why would you want a fire-breathing she-monster in a confined space? Otherwise, KMK, I back your advice 100%.

Mr. Brown, I also am a big fan of Sir Lutyen's bench.

Justin: If you remove the unnecessary railing (it is open and won't stop a toddler), you can sit with your feet over the edge, while gazing at the hanging vine and texting your pals over coffee, ah the fresh air and Wifi.