Can't comment on the faux grass but I would invest in the construction of an long trellis that runs either the entire length (or a good part) of it to create the privacy necessary. It will necessitate having a series of holes dug before the hardscape but that's an hour tops with a post hole auger. Is there code requirements for the height of the fence pictured? The great thing about the arbor is it bypasses the height restriction as a shade/garden feature within the property lines.

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Perhaps you would consider adding shade to the dining area, with either a shade tree planted on the edge of the artificial turf area, or an arbor attached to the house and extending into the space? Or, a table umbrella which would be a less costly option. Two good artificial turf products to consider are K-9 Grass and Ultimate Grass. Both have drainage layers and will have to be hosed down for cleaning quite frequently. I vote for two areas of the turf in your yard, although keep in mind they are petroleum based products and will get hotter than real grass. (Not as hot as sand, or stones, however!) If you incorporate shade into your plan, I think you will be a bit happier with the results.

lmager, the two areas of turf look great in your plans! You might want to put turf underneath your play equipment since artificial grass with padding will help protect your child from falls and provide extra safety. Landis Garden Design, SYNLawn offers products with technology that reduces heat by as much as 20 percent. This will definitely help in areas like AZ. You want to make sure that the turf works for your needs, so do your research because not all products are the same. Good luck with your new backyard!