Pull up the fabric (and the weeds) and get rid of it. Do not replace. Landscape professionals and nearly every homeowner that comes in contact with 'weed' cloth curses the stuff soundly! As you can tell, it doesn't exactly deter weeds very successfully and only makes them harder to get rid of, not to mention adversely impacting the growth of desired plants.

That's a couple of nice looking phormiums you have there. I'd be inclined to fill in with some dwarf conifers, hebes or other small evergreen shrubs and then just mulch well. Mulch is far more effective at weed suppression and actually gives something back to the gardens - weed cloth does not.

Yes - landscape fabric has become very fashionable over recent years but its supposed ease of maintenance is nonsense. In the long run it makes more trouble that its worth, as you have discovered. I agree that you need to pull it all up and get rid of it permanently. First job for me would be to make a very clear sharp edge to the area to keep the lawn out of the bed. Then, although it is hard to dig I would make an attempt to fork it over and remove and roots that have penetrated the fabric. Then I'd mulch it with compost, or whatever organic mulch you can find. Finally plant it up with shrubs and perennials suitable to your mild, windy, moist climate. (Phormiums are a good candiadte although eventually they will be enormous.) Good plant cover is the best way to keep weeds down imo.

I've got rid of the fabric, it's not perfect but it looks much better now. Thanks for your suggestions!

Impressive!

Oh, it looks much better now. Those plants are lovely.