Looks like a great place and even better views! Whereabouts is your home? Looks like the water is draining down towards the house and garage. There are so many options and possibilities for the things you mentioned. Permeable paving may be a smart way to go for the driveway, helping reduce run off and reducing oils and sediment from entering the storm system and draining into the lake below.

In regards to the retaining wall, you could paint it a different color, put some sort of veneer on it, or a simple option would be a planting plan to add color, texture and interest.

My #1 suggestion though, is finding/hiring a local landscape architect to come out to your home for a consultation. Landscape architects are trained to deal with everything you suggested, from the driveway and water issues, to retaining walls and plant expertise.

Good luck!

Thanks for your input. We live in the Okanagan, British Columbia, Canada. Yes, the view is spectacular and the reason we fell in love with the house. We are looking forward to spending the next few years moulding it into our dream home.