I would focus on function first. Once you've got everything figured out storage-wise, you could move on to wall treatment. I personally would not do board and batten, for a number of reasons.. The hall is fairly narrow and I think it will look even narrower with board and batten.

If you can fit a nice piece of furniture with space for coats/shoes that would probably be a better value.

Yes that was my fear.... but even furniture will make it look smaller no? Was hoping I could squeeze something like this?

I would put the credenza and the framed photos about where you have the two pictures nearer to the door. Then I think you have enough room where the credenza was to put a bench with a place to store shoes underneath. Mount a long board and screw in hooks to hang coats like your inspiration.