How about a reading corner with a small shelf of books?

I second the motion with Jeannie, why not your books, photo albums or your collection of anything if you have those?

I don't know if you have any pets but if you make this a mud room is there room for a half wall tile shower for bathing the pet (s)? If you have kids the room would be good for organizing a color coordinated cubbie system for each child. If no kids or pets, how about shelving it out and making it a walk in pantry?

A wet bar would be a good solution.

thanks for all suggestions! great, fresh ideas!