Could I cut this hill back instead of rebuilding the wall?

It may be possible, but the key question is what slope you can safely leave after excavation. If you cut into the hill for level space, the soil above still needs support, either from a stable graded slope or a new retaining wall set farther back. Since the ground drops away behind the wall too, a site visit from a qualified landscape or geotechnical professional would be a sensible first step.

Ask them to look at drainage, soil conditions, nearby trees, and the storm shelter and propane tank before settling on a plan. Changing the grade can also change where rainwater flows, so the goal should be a complete layout, not just removing the existing wall.

The dirt has to go somewhere, and that can be a big part of the job. You’d need to account for excavation, hauling or placing the soil, access for equipment, and any relocation work for the shelter or tank. A dozer can move material, but it doesn’t by itself answer whether the finished grade will be stable or where water will drain.

I’d get estimates for both options: cutting back to a gentler slope and rebuilding the wall with proper drainage. Ask each contractor to spell out what happens to the excavated soil and how the finished yard will handle heavy rain.

You might not have to choose between a full-height wall and flattening everything. A smaller wall, a stepped grade, or a gentler planted slope could create some usable space while keeping the excavation more limited. The right fit depends on the site, especially the trees, drainage, and how much flat area you actually need.

Before committing, mark out the space you want for parking and access to the porch. That can help a designer or contractor compare options without moving more earth than necessary.