LOL! Love that gutter and "downspout" to a splash block...really gets the water away from the house. Because of the window, I'd consider a door design that would appear like a folding closet door (tracks and all) has been laid across the cellar stair. The type of track would be similar to barn doors (but one at both top and bottom).

Remove that whole abortion, and install bilco door... take a look at basement entry kits they have: http://www.bilco.com/

Redesign.

Is this an actual entry into the house or what?

I have to agree with some of the other guys here - complete redo.

Yes there are stairs when you open it to go into the basement.

Consider building a roof above the windows and partially enclose or fully enclose with a regular door. It is difficult too advise without knowing what spaces are on the other side of the windows and the existing roof configuration or other factors.

Rip it out and start again it is so tacky looking.

I did an addition design for someone a while back with a walk out basement and the house I am working on it now, has the same basement entry, but it will involve extra work and it will be more expensive, but if your budget allows, you can leave everything open, install a floor drain at the entry door going under the slab and tie into existing sump pump pit ( add one if you don't have one installed) so the rain water can be discharged.
Here is an image to give you an idea, only here we used a sliding door and in your situation you will have a single door and narrower entry way.

Unfortunately we don't have the budget right now to rip it out and start over so was hoping for some creative ideas to hide some of the ugliness! Thanks everyone

I have a similar situation. I'm going to paint the bulkhead a light gray to match the stones on the ground around it. At least for now it will blend in with the ground and look less obvious. Good luck.

install bilco door or similar and save yourself from water intrusion and they look much better and easy access

Umm, remove it? Why live with something that stupid and ugly?