Tear it down would be where I would start. By the time you completely reconstruct what is there you will be in for more dollars then the tear down. There is more to "raising the roofline", than just raising the roofline.

IMO raising the roof will have minimal effect on enhancing the view since you are still just human height. I agree to raise a roof involves an architect , really rebuilding the whole upper section to make it work wit the main floor and honestly not IMO worth the money not to mention IMO a 2 storey house there might not look all that good either. If this was mine I would do sliding patio doors where the windows are a new deck with metal and glass railings to allow the view and i think a multi level deck instead of that skimpy one you have now would aslo give you a nice outdoor living space .