A Friend of mine In Bergamo, Italy asked me for some advice for her porch, of which i am dying to visit the next time i am there, because your space is quite small and you have the most unbelievable views i would opt to stay away from building up your wall.
First thing to remove is the Afroturf and as you said burn it! Start from scratch, you can either lay wooden planks down to give it more texture, Balau/Ipe/Bamboo try suppliers Stable Marketing, Forest Flooring or Decking wood tiles that snap into place/ composite wooden flooring/ tiles that look like wood or you could try paving stones if you want a more rustic feel outside otherwise gravel stones combined with rough tiles (for better grip and less likely you will slip) place them as a pathway or around the surrounding area.
Trellis work is another great idea, hides any imperfect walls/rough plaster work. Attaching several lattice trellises to the exterior portion of the porch allows for privacy and a place for vines or climbing roses to grow. You can find manufactured lattice trellises at building supply centers, local department stores or garden centers. Lattice trellises come in many shapes and sizes. Choose plants according to zone hardiness and local soil conditions. Train plants to climb up trellises by gently attaching them with string.
Lanterns, i just love them, all about the layering in this image, great idea with the Plantation shutters, creating an interest, instead of a bland and plain white wall. For similar look and more try, Plantation Shutter company. Hadeda has a great selection of lantens. Try Moroccan Warehouse for the floor scatters as well as coffee tables, Gonsenhausers for the Rug.
Photo Credit: Domino Magazine
Curtains soften a splace, and block out harsh daylight, great place to draw the curtains slightly and have a nice nap. Home Fabrics have a great range of block out fabrics.
Photo Credits: Domino Magazine
Regarding furniture, you should either opt for wood that will age nicely by being exposed to the elements ie Teak/Balau wood etc… or the synthetic wicker/cane variety, but there are some great options out there, alternatively on the smaller side, you can layer with scatter cushions, covered in outdoor fabrics, such as Sunbrella from Kravett available from St Leger & Viney or Dickson, Perennials, available from Mavromac, to name a few, local fabric houses stock a range or two of great striped/floral/plain fabrics, from colourful to neutral tones, suitable for all applications.
Clever use of plantation, hiding the unsightly buildings, creating your own little private area. Create an interest rather than looking onto a bland wall of another building. For similar furniture, try MBM, or Cane Time.