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that looks great and certainly looks like you have more space. We had similar i.e. low retaining walls that made everything feel cramped.
Seal it sooner rather than later as it is amazing how quickly it gets weathered.
yes it definitely needs softening and my choice would be gravel both sides with a membrane on the left hand side to aid weed control.
What is the new black wire on your shed(?) wall and is it permanent?
Before:
After*:
*still to do:
Not 100% sold on the grainny look of the grout, but have limited fucks left at the moment. However, it feels bigger and is a much more usable space. Looking forward to softening up the edges.
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