you could just ignore the space altogether and add some oversized wall art and a huge planter with a tall plant/tree in the centre of the space.

Bench cushions, and a little cafe table for morning coffee for guests? And also can hang the mosaic also...kids like little tables for coloring...using laptops, etc.

Consider using some or all the bench as a self area to place decorative large scale vase with medium scale plants? Leave center area open for sitting?

Once you decide on what outdoor furnishings would fit the space, perhaps a custom mural on part or all of the wall to bring in a little color and add your sense of style outdoors. Don't necessarily think a landscape, it could be geometric, abstract, floral, ANYTHING!

Could you fit a hot tub into the space? Then you would have brick "steps" on three sides...

A water feature would be good. Similar to the hot tub idea but less maintenance. And plants to add a touch of color and greenery.

Ironwood, would you say that's too close to the house for a fire? That idea was appealing visually but made me nervous about its proximity to the home.

OK for a gas log or fireplace...not a wood fired...The examples shown above are gas...so I didn't have a problem (though the post does say wood fire too). I also saw the fireplace as centered into the bench seating area, small enough and separated from the house by feet. Problem is..this is more or less a throw away space...not necessary for entertaining or cooking or even lounging as I understand it. So a water feature or a planter box makes more sense to me. The hot tub is a good idea too...it will be a maintenance item and I always question how much use they will get.