plan to put a small closet in this "alcove".

don't mind the scuffs, again, work in progress!

sorry if these pics are confusing, I tried to take a picture that would sort of show the whole space but that didn't work well.

Too many damn doors and doorways, I hate this area!! It serves no purpose! I need help :(

Try posting a layout of the space to give some context.

Coat rack for the entry from the garage. Pretty hooks on the wall.

Hang a picture or mirror. I like patriceny's suggestion. You don't need much.

I'd put a prettier light fixture and a colorful rug/runner along with some art.

As I come down the stairs in the first photo I'd like to see a long, skinny table with some art above it.

I like the idea of staging it as a (small) mud room type space, with an attractive area for hanging coats or shoe storage--whatever you can fit into the space without making it feel crowded--I like the small added closet, but something like this in the same spot would be nice.