Couple of my friends who have small lots in town have dug out all grass put landscape cloth down and washed stone over whole yard. Looks ok not practical if you like being out side. They have patios to sit on and bbq.
In the U.K. the yards aren't very big in most cases so they will put artificial turf down. Done right you can't tell the difference from a distance. Just have to hose it down once in a while