Can you extend your patio out further? I would wrap the entire curving edge of the patio with extra wide stairs made out of Trex. The top step can be wide enough to put patio furniture on, maybe 5 feet. If that is too wide, you might make the steps 24" wide for a graceful walk down to the yard below. The wide steps could be used for sitting. Most cities do not require permits for decks less then 30 inches from the ground. You can check with your local building department. If they do want a permit, most contractors can help with this.

Lowes is selling tall vertical gas heaters that look like towers of flames. They are beautiful and dramatic and they don't take up a lot of space.

You might also paint your fence a bright playful color. There are also concrete stains to put on the existing patio.....

You can try modernizing it with some teak furniture (I recently did my patio and have become a big fan) Here is an example of a inviting and modern looking chair/side table. I was going to attach the picture but I can't get it to work so here is the website: www.teakbarn.ca.