Built-in shelving, for books or art, or other small focal points to draw the visitor's attention.

Is the next room on the right the kitchen? Maybe it could be a pantry. Otherwise place a small entry table or cabinet there with art above, or shelves.

Why not have a focal point like this !

Preferably a Golden Buddha .

I'm just giggling about Sponge Bob on TV...

First, do you realize if you take out the closet you will need to fix the wood floors. The walls are usually built below floor level and the wood is installed around the walls. Are you able to do this? Do you have matching wood? To make it appear seamless you should redo a patch about 3x6.

I would leave in the closet unless you are prepared to do floor and ceiling changes. As suggested use the closet as a pantry or other storage. Or you could put whatever is in that tall cabinet beside the TV in that closet. Or you could put the whole cabinet in the closet. It does not add anything to your living room. Then I would paint your door chime cover the same color as the wall. I would add a small but spectacular colored piece of furniture on that wall which faces the entry door. Or you could consider a stand with a sculptured piece of art on it. If you have kids running around make sure both pieces are fastened to floor or wall to avoid hazard.

I like the idea with build in shelves or a table with a picture above. I will redo the whole flooring and I will use a pickled oak stain. Now is a good idea to decide to take the closet down because I have a mess already in the house. I also will take down the dated staircase and get new spindles. The biggest mistake was that i did not really plan for all this. It all started with a new kitchen. Next time I will hire a decorator who know what the are doing. If you have recommendations for the space it would be great to attach a picture. Thank you all!!!!

I like the idea of a table with a picture above it. Since the table will be seen from its side profile perhaps something with ornate legs...wood or metal would add interest to your entry way.

(Smart floor comment) - Do like a table/cool desk/dresser - love screen - interesting ones with plant in front or behind in accent color planter - A focal piece definitely to divert eyes from walking in and seeing entire living area from entrance way.

A glass wall made out of glass blocks would look nice. You could also design it using a step effect.

a collection of jazz album covers

Shelves, clean lines and space to display something you love, eye catching.

A wall of stack-stone would definetly look great!

Oh my gosh, you have the opposite problem, I can never have enough closets. But if you don't need it what about making it into a mini bar since your living room is on the other side. Put glass shelves for glasses, and bottles. If there is an outlet you can come through the wall put a mini refrigerator with a counter.
or
Since Sponge Bob is on TV what about storage shelves with baskets for toys.
or
Cleaning supplies closet - brooms vacuums, shelves for products.
okay okay I'm a clean freak yes I need a closet just for that stuff.
or
If you like contemporary, close the wall in and put stone on the three exposed sides.

Why do you need to leave the wall between the living room and entry? Do you NEED to leave it, or you just want to?

erikadidericksen: I'm guessing since she did say that she *needed* to leave the wall, it's probably load-bearing.

There are a few options to work around a load-bearing wall, that's why I asked. Some people like to keep an "entry-area" so you can't see the living room from the door.

I like mahtamouse's suggestion to flip the door side to the living room and open area up for storage there, you could probably fit that tall black thing in there.