Privacy could be obtained with a screen, placement of potted plants, an open bookcase, but I like your idea for a curved track with a curtain as one option for visual privacy. I would rotate the dining table 90 degrees and move it towards the balcony. I would remove those two chairs/tables because the layout of a single chair that far apart from another chair does not work. You may need to move the seating away from the main entrance because it looks like you walk in and you're on top of a loveseat. In such a tight space with so many doors that open in to the main living/dining - my advice is to keep it simple. Scale the furniture properly and have pieces that are multi-functional. Example- an ottoman that can serve as seating. A bench at the dining table to seat 3 on each side. I would also place two smaller loveseats facing each other in front of the fireplace. This will give you an "entry area" (along the back side of the kitchen wall) and help to define the living from dining rooms. Even if you don't have a formal entry, try to create a bit of space to welcome people.

What did you eventually decide on doing with the space? Feel free to upload some photos! :)

Do you have a photo of the terrace garden now? There are so many creative vertical gardens right now - I'd love to help come up with the perfect design for your space. I'm sure you've browsed Houzz, but here is a specific search for vertical gardens - the possibilities are endless! https://www.houzz.com/photos/vertical-garden-design-ideas-phbr1-bp~t_724~a_34-281

What is the shower base made of? If we know that we can give you a better idea of what the issue is.