IMO it is likely the outdoor tables at calheta cafe would still be out at 10pm.
It wasn't that cold - for example at 10pm there were people who chose to be eating in the outdoor area of Tapas restaurant, and others tourists who chose to be eating outside on their balcony.
Also the lower part of stepped lane is visible from inside Dolphin.
Are you sure that any part of the stepped lane would be visible from the Dolphin Shining, cos looking on GE, unless I am mistaken, it doesn't have any windows on its northern side
And I think that the angle is too acute for anyone in the Dolphin, on its
western soz, eastern face, to see up that stepped Lane with the thickness of window frames in the way . There also appears to be a tree is the way, altho I take you point about that it might have been smaller in 2007.
I suppose that i could check that on GE in 2007. One GE, in 2007, is hopeless, the other on the 22nd IIRC is very clear.