What about a small Balinese hot and the end of the pool to hide the shed and a bit of the long fence...would make the fence seem smaller so it doesn't give the feeling of elongating the yard? Then just plant lots of tropical and colourful "divineness" all around...non deciduous of course, golden cane palms...hibiscus...heliconia...!

I'm sure most people would envy you the pool and potential this area has. Not sure what your requirements are when it comes to "use" of the land. Have you thought of a cabana at the end of the big pool in front of the shed? It would hide the shed and at the same time give you a focal point that draws the eye to the beautiful length of the pool... and at the same time provide a visual full stop with the cabana.

(If money is an issue....I recently purchased a beautiful outdoor gazebo and placed it on our outdoor wooden deck which was always too hot to sit on and the whole family now sits out there under the gazebo for most of our meals-I like to make flat land-useable land)

The surrounding gardens (I agree with fianou) that large leafed, tropical plants would help soften the overall look (if that's what you want/like) . Other people like the harder lines and a starker more modern look. If that's the case then put in more structural plants. Just depends on your own personal taste. Not sure that the existing palm trees are a help or a hindrance as many drop seeds into the pool and from a visual point of view can look like telegraph poles if not under-planted with other medium sized shrubs that balance the overall design. If there are surrounding areas that you want to use as pathways...Astro Turf is a great alternative to traditional hard surface choices.Good luck with your plans!

If you put plants along the fence line, all the same plant, that has growth to the ground, then the garden will automatically look bigger. Hiding fences is paramount to making a property look bigger. You will need to keep some/all of them trimmed, even as a hedge. And you need height. The vertical aspect is so important in garden design.

Why not put the shed right at the very end of the fence line - then its not so noticeable.

I would suggest a raised deck at the rear of the pool incorporating the pool blanket. You would gain a sun deck/diving platform (assuming this is the deep end). if you don't need the shed get rid of it, pull out the garden on the left hand side and run a line of steppers and stones leading to the deck. put in a few deck steps on this side and your sun deck would also provide enough space for a trendy sitting area with a small couch/table setting - include a retractable umbrella in summer and you gain additional entertaining space. if you don't have small children, move the pool fence to increase the yard space on the inside of the pool area in the second photo - run the pool fence between the patio posts.