I would probably transplant the clump of ornamental grass. It is too tall for its location and consuming the more attractive ornamental tree. I, too, advise increasing the size of the planting bed beside your driveway, adding curves that will permit you to plant appropriate perennials as well as annuals as the season permits. The grass is a nice plant in the wrong place, I think. It will look better in a less obvious spot in your yard.

Yes...could definitely be Rose of Sharon. We have a pink one...it attracts both bees and hummingbirds.

Please do not "spray" these shrubs. You are harming birds, bees, butterflies & all kinds of other beneficial insects. The insecticide is far more harmful than whatever "pest" you are trying to eradicate. If you have a plant that regularly becomes infested, it's a sign the plant does not belong in whatever place--or possibly region--it is planted in. Even so-called organic insecticidal soaps kill honey bees & butterflies. There is no such thing as a "safe" garden chemical.

I will preface this by saying I'm no official licensed landscaper (and I hate most landscaping styles), I'm just someone who has been into gardening since I was a child but I have only had small spaces to work with. I can't guarantee that what I say is best. here's some things I have done that might help you: I have planted undestory/small trees by walls (a flowering dogwood and a native plum). I just trim the lower branches on the wall-side all the way to the trunk and leave the others and top branches full. I do this until they are over the wall. Then, I remove the branches along the trunk so it is more tree-ish, it's similar to general tree-training except you are more aggressive on one side than usual. The house I live in came with crepe myrtles planted almost under the eaves of the house. They were too large to remove without paying a lot of money (and possibly damaging the house) and/or cutting them to ugly stumps and using chemicals. What we did was the same as the above but to a multi-trunked tree, letting the farthest trunks mature and keeping the others in check. Now that the farthest trunks are older and shade the bottom+top branches are taller than roof it doesn't need trimming as often. The species mentioned are all larger than yours and do not have a cascading habit so I'm not sure how much applies. Still, since these are just walls (not important foundation) and they are casting shade in one direction I think this spot can work especially since this is a tree with smaller leaves that are less likely to get hurt by growing up into the walls. Short Version: It being such a small height is the main concern to me as it will never fully clear the fence but due to being in a corner that discourages growth in the area you don't want it it's probably fine IMO. It's actually less crowded than the dwarf fig is and will create a nice effect with the small cascading leaves. Pair it with some cottage garden plants in pastel shades to complete the look (if you are in the American Southeast I have recommendations; cooler areas should have plenty of lists online).