gardening question

[Manlove]

lazydays wrote:
I've always wanted to transform this backyard area into more of an evergreen/japanese garden/something different than it is right now, kind of place.

This is the pertinent part of your post. Transformation.
What you have there already is static, dead, even the things that aren't dead look dead because they don't move or play together. They look plonked rather than thoughtfully placed with intent.
Start over. Make it an expression of self.

I have some friends who live in Bend, OR which is high, dry desert, which sounds like what you have.
Maybe ditch the lawn? It is so hard to keep alive out there. Japanese plants aren't really suited to that environment, but a some maples would be okay (check Sunset). Look at lots of pictures.
Make this the planning year.
Gardens last for decades so don't rush when you don't have to.
Of course, if you are planning to sell soon, pull out the dead shrubs cover with fresh mulch and presto...!