I would suggest that you would not want to block those windows to the basement with shrubs. The island does not do much good compositionally in my opinion. If you were to remove that, you could still save the tree, although not the most well placed tree. If you were to do that, you could then make a bed that would be farther away from the basement portion of the house. Light could go in, and the planting can sweep out in front making the rest of the house planting feel right as a recessed planting close to the house - the walkway has forced a narrow bed there to begin with. The space between the windows and back of the planting could have patio flagging, crushed stone (although north Idaho basalt is not very attractive as a crushed surface), or mulch. Smaller low delicate plants could also be added in front and next to rhe windows.

We have cherry laurels planted beside them where they aren't blocking the windows, and they keep their leaves (in our zone at least) so in winter the house doesn't look naked.

Ont the other side of the front door, we have low-growing Japanese hollies in front of the windows. They aren't tall enough to block any light at all, but the view from indoors isn't as pretty as the clethra, either.