Hi Lyn!
I can totally see why you could be so inclined to think about it.
Looks to me like you already have a rock garden, maybe just not one that pleases you so much.
That is quite a slope and I am wondering ...do you have something behind that fence retaining the earth or is it literally like a rock outcroping that is not moving much to speak of? If it really is just 'rock' with a little crust, then I would surmise that you would not have a poor drainage issue with the slope run-off, lack of soil, and thirsty evergreens even in your wet season.
Ideal spot for a rock garden!
So are you just looking to fill in the "bare spot"? What's the aspect?
>>That's the problem. I don't know what I "should" want or how to go about it.>>
What a fun problem. Start looking at western mountain rock dwellers (sorry, searches respond better to 'plants' and qualifiers like 'alpine' and 'native') to see what might want to grow there; branch out from there and start looking at the enormous variety of rock dwellers that might be equally happy if you tried them, and then try to narrow it down to that which you can't seem to resist.
I'd start with several small plants for instant gratification and consider direct sowing for some of the practically impossible to plant rock and/or tucking in seedlings where you can.
