Backyard Plan

Okay, so we tried to come up with a plan for the backyard that involved the least amount of demolition and hopefully would allow us to fully utilize the outdoor space as additional living area. After both Mr. Burlli and I worked on individual plans, we attempted to synthesize them.... unfortunately we were unable to include JT's wish for a waterfall and a natural pool. I think a natural pool would have been fun, too. But somehow not practical with kids and a drought.
I am optimistic that we can get apple trees to grow and I want to try to espalier them, but really, my gardening is sort of hit and miss. Often more miss than hit. I am still waiting to grow a green thumb.
Any suggestions for our plan? More deck? Less deck? More trees? Other plants or tree options?
I think he left off the compass - north is to the left of the plan.
Also, we are thinking of 2 or 3 shade sails over the deck for shade. I would have liked a pergola to train vines on, but I am pretty sure that is not in the budget.
What else.... hm, the space where the water heater is now should eventually become steps to the side of the house (when we decide to upgrade to a tankless heater at some distant, very distant future date).
Oh, and the living wall is actually a wooden frame with succulents growing out of  it. We saw one at the county fair and it was really cool. I think we could do these elsewhere, not necessarily where it is on the plan.
So, give us your best ideas! This is just the first sketch! Hopefully we will have a functional backyard by Christmas, so be creative. Our main limitations are the lack of rain (so we need drought-tolerant plants) and the searing sun, as well as the already existing yucky-too-small slippery -when-wet tile patio. This plan calls for removing tiles from the top step of the current step-onto porch, a trap-door for access into the crawl space (the door for that is  under the bathroom), jackhammering out some concrete next to the driveway and also using said jackhammer to excavate some holes in our hard as rock baackyard for trees. (Any suggestions to keep the bermuda grass contained? Ha!)