What should I do?
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Cultured stone panels would look great there, and would provide a nice walkway.
I love butterfly bushes! Ok, what I would do is get rid of the fence post. Fill in the ground with soil that is sloping away from the house. Then you can define the garden with garden blocks. Then put in cedar mulch. Cedar repels some bugs.
Love that!
I agree, faux stone panels would look great! Depending on the color you choose it can really liven this space up. I'd also consider adding some other plants perhaps some short length greenery that gets some flowers now and then.
Ideas on YouTube: https://www.youtube.com/results?search_query=landscape+side+of+house
https://www.youtube.com/results?search_query=rock+boundary+side+of+house
You could make a fairy garden and little white stone path ways in the garden . Add a few little things here and there and put some solar lights in with it .This is what I did next to our fence that only had a few little bushes and was rather BLA after we had to cut some trees down .I use the stumps and made doors on them and placed little paths around them with the fairy houses and a small solar water fountain in the center by the wishing well.It is an eye catcher for sure and everyone loves it.