could you move your washer and dryer down or take down the overhead cabinets and stack them and then have a place to hang coats right by the back entrance?

You could switch yup your current rod and hanger arrangement with something like this http://www.amazon.com/Clothes-Vine-Vertical-Hangers/dp/B007QZPMJG and have more room to hang coats.

The great thing about this room is that you have tons of storage space! You can always add more hooks the wall across from the washer and dryer, make the existing coat closet another pantry area with the addition of some shelving or bins, remove the outdated border and paint the wood trim white. By doing this you will open the space so that it doesn't seem so closed in. Another great idea is to paint the interior of the door with magnetic chalkboard paint and use it as a message center for your family.

Thanks for the ideas. I am definitely going to be stripping off the old wallpaper border and painting the walls. The foyer leads into my kitchen so I thought I would tear out the closets and add bead board with hooks and a bench where the existing closets are. The bench will have storage under for shoes and additional storage will be added to above the hooks for hats, gloves and helmets. I won't be able to do this till fall, but I will make sure I post a picture when it is complete. We have been debating about getting a new washer so that we can either stack the washer and dryer and add a sink or place them side by side and add a counter top on the washer and dryer to utilize for folding.