I voted storage, given the loss of your hall closet and using light paint and good lighting can make a big difference.

Have you considered a smaller window and/or its location, so as to get some light but not reduce storage significantly.

@Maureen thanks! I was concerned with window shape because that side of the house is visible from the street and I did not want to have 3 different window and door types facing out. I do like the first photo you sent!

I am painting a light color (alabaster) and got some LED ceiling lights vs the flourescent that is there now. I would like to do some darker painted cabinetry then for some contrast.

Alabastar is a lovely color, but before going too dark on cabinetry, test a few medium shades as they can reflect light a little better and may keep space feeling more airy.

If it is the same style as most of the other windows, a smaller high one would be nice. What is above? If there is nothing above the laundry room, add a solatube. It’s like having a light on, without the electricity. You can get a solatube with an integrated light, too.