What would you do?

Those who have read my earlier post will know that us and our neighbour are civil to each other but that's about it. We have various issue regarding her privicay and fences which is usually the only reason she will talk to me. 

The latest issue is the bottom of our garden which looks like this. 

You can see the chicken wire fencing that has always been there with my clematis growing along it (I did cover the whole fence until it was hacked by the neighbour last year. Behind the fence is the neighbours passage way to her back garden. She wants us to put a high fence up so she has privacy as at the moment she feels she is unable to use it when we are in the garden. We are reluctant to put a high fence up as it's an expense we don't really want to do and it will probably make our garden look smaller. 

This has all stemmed from the seating area I made from my old veg patch 

As you can see from this picture the neighbours gate. Now we have some options.

Put a high fence up which we don't really want to do as in a couple of years we will probably put a garden room that will create a natural fence anyway.

I'm considering trellis and growing things up it though if I have trellis she wants it to be backed so we can't see through. 

Or using bamboo fencing and attaching it to the current fence.

I have explained that a high fence will make the passage way dark and very damp as no sunlight will beable to shine through she doesn't mind. 

So now I'm not sure what to do and its making me feel like I can't use our garden because it makes her feel uncomfortable.