I like pavers better, but stamped concrete is usually less expensive.

The area should be viewed as an outdoor room. Find a new location for the garbage and recycling bins.

First pressure wash the concrete and decide if it needs a paint job.

If you eat out there, then you might want to consider a outdoor rug to establish the eating area along with table, chairs, and umbrella if required

If you want to use it at night consider lighting the area. You can string the lights between the house and garage.

Agreed the garbage has to go. Also I gutter on that garage with the downspout directed away from the sitting area and home would help. While a bit more rural in function, I have seen decorative gravel picnic areas work quite nicely! ... and you can't beat the price!

Remove the concrete. Replace with a base layer of inexpensive pea gravel then cover with a thin layer of crushed granite overtop. Packed down, it's a solid surface for table and chairs. Paint the brick steps. If no other place to relocate trash/recycle cans, move them closer to fence and build a small privacy screen that matches the fence to hide them. Very affordable way to freshen up the space.

I would lay 1-3/8" clay pavers on the concrete slab. You would probably have to do a little prep work on the depressed area by building up with bagged concrete.

Then you would just adhere border pavers with masonry adhesive, cover the entire remaining area with roofers felt and then lay pavers on top and sweep a little sand between the joints.

In is both easy to DIY and not expensive and can make a huge difference. We are talking a fraction of the $8,000 estimate and can do it in one weekend.

Here are instructions:

http://www.pinehallbrick.com/page/Paving_a_Concrete_Slab

you have a lot of space to be creative ,here is what we have done with ours

Also important to shop around for your projects.

A 4" by 8" concrete red pavers costs $.82 cents a piece at the local Lowe's Store, but I can get the same size and style in a clay paver, which has a much richer red color and is more durable for $.54 cents a piece at the local brick distributor.

The big box stores are not the spot for concrete and clay pavers.

Try to get direct from the manufacturer or through one of their distributors.