yes, its good to have a separate place for the bulk of the toys.

If sufficient bedroom space, it is better there and just have the odd few tops in a chest or stool that opens in living room.

I just want to share that my kids went through toy overload at different ages and some odd "that doesn't mix so well", fights, and bored toy/play space rather quickly. I think it is better to have less toys overall (i.e., garden, cooking, telescope, etc!) but I really support some toy displays or welcoming play invitations a little more high style, family fun, classic wood toys, maybe some forts, understand where this is going? If you have a wall or bins, setups everywhere, you will be sad quickly when your little one cries every week they can't pick up and you will understand, actually, they can't process so much for their age, because so many toys are overwhelming the space at one time. Spread them around tastefully and you can ask them to put them away much easier! (most of the time) And no matter what anyone says, always rotate if you can, even tall shelves over doors, tall pantry shelf, etc. It helps wonders for so many reasons!