Yes I can see why you don't like it. I think you do need to fill in the space with something, so when people come to the front door, they don't see right into your house. Got to find some ideas for you.

I see what you mean. That is a strange place to have a banister! I would just take it out. You'll have another open door way into the next room and there's nothing wrong with that! If you have enough room, maybe consider a long foyer table there.

http://www.crestviewdoors.com/order/products/redi-screens.html
Here's an idea. These may not be in your budget, but perhaps you could have something similar made - painted white maybe.

I'd fill it with something. A stained glass panel would be AWESOME; a big cool screen would be cheaper but cool

Agreed with stained or frosted glass panel to provide some privacy while keeping things open.

Doubt the glass panel is very practical as it would border a playroom! Don't do anything too precious so the kids are afraid to play. Could you drywall it in (setback a bit toward the playroom) and make a mini mudroom? Have you seen the pics on pinterest where people turned tiny closets into mudrooms with hooks and a bench? Check it out! Kids come with so much stuff!!

Take the banister out first, then try a few things, a bench, a screen, a bookcase facing the playroom, a foyer table, something will work and you can have it built.

Back door for the above idea, but not the front door! Do you really want to see a "mud room" set up when guests arrive - I think not. The bookcase idea facing the playroom - much better idea.

I like the idea of the frosted glass panel however I think that could be for future when your children are grown up and the room changes from a play room into a family sitting room.
For now I would just do something temporary that you can live with for a time. I would just paint the posts the same colour as your wall.This way it will blend nicely and not stand out and irritate you..For now I would put a nice bench up against it with storage to tidy up your entry way...

Angel18432, she says she comes in this door. Don't you think a cute, tidy little mudroom is better than shoes and jackets all over the floor?

I wouldn't want a mudroom at my front door. If there's a way to hide little shoes under a comfortable bench maybe?

Would be nice if a bench could look built in and have a lid (with a fabric top) that could lift for storing stuff. Nice place to put on and take off shoes.

I like the bench idea. Could be used from both sides.

More reasonable panels: Acurio latticeworks (Homedepot) at $30 - $40

I think you might put a shelf with too sides,one side face to the door for shoes keeping,and the other side at the back to keep baby's stuffs,not take all the fence place,maybe just a part of

Remove the bannister, have someone come in and build a 1/2 wall and put a decorative vase put there. It look beautiful in your entryway, and later you could always put shelves there if you want to change it. Also, I'd suggest you use some stone tiles, it will make your entryway "happy" and elegant, to some extent. :-)

Honestly, start by taking it down. Remove the top rail and pull out each spindle, patch the holes in the bottom rail with wood putty and live with it like that. I don't know that you need anything there. It will really open the place up.

1/2 wall would be great and then opaque glass insert above that?

Something like this... Face the shelving into the other room and use if for books or shoes as someone suggested.

Yep, get rid of the banister - before your baby can crawl. We had a similar, useless banister a couple houses ago and a friend's 10 month old crawled over and got his head stuck between the slats!

Love the shelving Andy Pike suggested! It will shield your eyes from the toy mess too. :)