If you do install hinged art or a door, put a white/magnetic board on the inside for notes/reminders/lists you may need before leaving the house. Or to add on to everdebz's idea, you could add a hinged frame, changing out the photo every once in awhile.

Even adding a little border around it would look nice. Maybe some nice white colored wood to go with your door. Just a boarder around the sides I think would look nice. :) just a thought.

Why not make it a piece of art something like this.Have a bit of fun .

I was going to suggest the canvas on hinges idea too. It would tidy it up but still leave this convenient drop off area. You don't want to emphasize it by adding different color or bling. Doing that would make it a focal point and you don't want to do that. It's busy and overflowing, and that's fine for use, but unattractive for décor. So keep it, but cover it up with something that is nice to look at while maintaining easy access for it.

Is this near the front door or a garage entrance? I really don't like when builders assume they know what's best and insert niches and nooks at random. It looks out-of-place and off-center with the door bell and the light switch. There are lots of key-holders that you can purchase and then the choice of placement is yours. I'd dry-wall over it. Don't highlight it or add rhinestones.

Its right next to the door garage. It is very handy but yes a bit of a weird location i think lol. Thank you so much guys, i wouldve never though about those suggestions!!!! Really appreciate it!!!!! :)))