Looking at the shadows, I am wondering whether the wall with the plaques on it faces north. If so, can the height of this be reduced? If it is north facing, the room beyond the courtyard would be extremely dark in winter - miserable and cold. If this wall could be dropped so that it is 1.5 metres tall, possibly with a line of fastigiate deciduous trees on the far side to then provide DECIDUOUS height, winter would be lighter and the solid mass of the wall would be reduced. It really is a rather difficult spot. And the paved base of the courtyard only allows for pots unless you want to dig up the pavers and put in tree ferns etc. But then it looks as though the area would get the full blast of hot midday sun. I live in coastal SW Victoria where our climate is similar to yours. But we still get hot days during summer which can scorch plants that haven't acclimatised to this heat.

I would definitely try to move the handrail to the outside of the stairs, the wider the stairs appear, the more welcoming and functional they will be. I don't think I'd go with steel though, I would keep to the era which was timber, it could be painted or stained. I also like most of the ideas and in addition think that painting the rafters a light colour toning with your overall theme will make the whole area feel more expansive. Add a feature to the entrance by way of colour on the door, as suggested or some very sleek ornament on the wall as suggested or my preference would be to feature the risers as mentioned.

From what you have said, I think smaller separate pieces such as couch and chair(s) rather than a large sectional is likely to work better in the space and still allow for traffic flow. However, if you still have lots to do then don't rush to make large purchases. In the meantime, if your current sectional looks better pulled away from the wall a bit, then perhaps you could rotate the side table so that the long side runs parallel with the sofa arm instead of the wall. Would that help to stop it blocking the doorway and resolve the 'not quite right' placement?

Hi Z Cee A lovely headboard choice!! As mentioned in comments above, the headboard is the star of the show in this room but the choice of bedsides need to compliment it. I would look for something that echos the headboard with some texture, or patina but nothing too dark or heavy. Something in antique brass would look great and give a lift against the timber. Sidetables and stools make good options for bedsides if you dont need the storage. A couple of ideas below. Best wishes