I can't think of anything that will meet your needs that isn't going to look at least somewhat similar to the photo you have posted. There is a reason the locker-type pieces look the way they do. They are great for shoes and backpacks and coats and some sporting equipment.

Move the closet door and build a unit suitable for four children. I would leave out the drawers so shoes could go below. But it is your house and you know your children's needs better than anyone. It is so great you can build it to your specs.

I would make the whole space an enclosed closet. Build in shelves or hooks or whatever you need, but behind doors you can close. Anything else turns your front entry into a mud room.

That’s such a great idea! I didn’t even think of that. 💕

That IS clever! I have a similar layout and never once thought of just enclosing it (I hate looking at clutter/stuff laying out.)