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i love bamboo, giant bird of paradise etc but do NOT put next to your pool. In our last build we used Zanadu. Big leaves that do not drop and bullet proof. Perhaps find another way to cover the fence other than plants that almost always drop their leave and have invasive roots.

How luxurious! I wouldn't mind swimming there.

What a great pool for starters. I do see your dilemma though. For the fence: I would give it a paint, choose a colour that ties your house in. Add laser cut screens or put in a vertical wall garden as you don't have a lot of room to have a row of pots. In saying that a few large pots around are great to add some interest and colour. Strelitzia's are great plants to use. Tough, can handle sun, lovely bright orange flowers. Certain sun loving bromeliads, great colours. Clumping palms are always a winner. Just watch yuccas, as previously suggested, as they are often spikey, with kids running around I would stick with softer foliage. Somewhere to sit is always important but again you don't seem to have a lot of space and you don't want to overcrowd the area. Perhaps a long bench seat along the far fence, include outdoor cushions and built in storage under seat for pool toys. A large umbrella in the corner for some shade. All of these can add colour while being practical. However I do like the idea of extending the back pool fence out to create more space, Bali hut here we come! This may not be an option.... Good luck, I'm sure with a bit of planning you can turn this into a beautiful space for everyone to enjoy.