Pine needles break down into neutral organic matter. That first picture does look ideal for mulch purposes. It breaks down into usable soil faster than you'd expect though and is probably filled with weed seeds just ready to sprout. I would happily use it, but be prepared to 'stir' the surface occasionally to dislodge those weeds that are germinating.
I agree that those weeds look like sow thistle to me. I had to double check your location because that looks so much like my yard did when we bought this house. They seemed to grow best where the soil was extremely compacted. The nice thing about it is that they do improve compacted soil over time. Invest in a good quality weed puller that you can use when standing. Every thistle you pull out will have helped you aerate that ground.
Getting grass to grow there could be a completely different problem. The amount of exposed rocks in that photo suggests to me that you have very impoverished dirt (note I don't say soil here). I don't see more than a couple of crab grass seedlings. At the very least you need more organic matter. I follow paul's mowing guidelines in his lawn care article. The grass and grass clippings do the work of incorporating an ever increasing amount of organic material into the soil. I don't
water or fertilize the grass, but even that one guideline has gone a long way towards improving the health of the grass. That isn't an option until you actually have something to mow, but you can start that process even with weeds. If you have some time to develop the soil, you could try mulch that area and then work on introducing grass after you have soil instead of dead dirt. Usually the extension service will do low cost laboratory testing to give you a detailed analysis of exactly what's going on if you want to buy in amendments. Any money you spend on seed or sod will probably be completely wasted until you can get some life into that ground.
You're fairly new here, so you may not have seen some of recommendations for contacting
local tree services. Many of them chip branches as they prune them (it lets them fit more into each truck) and then they take them to
city dumps and pay to dispose of them. This costs them both time and money. Frequently, if asked nicely, they will agree to dump that load on your property instead. This is a good and free resource to bring organic matter and all the nutrition it contains onto your property. Use it only for surface applications as tilling it into your soil can tie up nitrogen until it is well rotted. In my gardens I often pile it as deep as six inches or more if I'm trying to kill grass. I use it to fill in swales to use as walkways without impeding their water harvesting function. And after a couple of years in a pile it breaks down into a very fine
compost that makes a great potting soil or can be sifted to be a good seed starting material. Another possible resource are local
coffee houses if you can collect their coffee grounds. The Starbucks in our area have a standing policy of giving their coffee grounds to anyone on request. It's usually a good sized bag of them, in my
experience.
Exercise some caution whenever introducing off site organic materials (be they compost, chips, manures or lawn clippings) There is a growing problem with persistent herbicides being using in modern agriculture that can survive pretty much anything up to and including passing through an animal. You can unwittingly carry these onto your property and wreck years of havoc onto your fledgling
gardening efforts. I haven't seen it happen with
wood chips, so I am still comfortable using them myself. My area isn't much for spraying chemicals on our landscapes. If your area has a chemical heavy culture, you may want to limit your requests to 'green' businesses. Organic companies shouldn't be using such substances. Because coffee is grown in thick shade with thick mulches, it's also a relatively safe option.