If we've learned anything from our readers, especially the Small, Cool participants (and we've learned many things), it's that every millimeter counts. From mudrooms to reading nooks, spaces for one (or two!) to sleep, these once-upon-a-time closets will have even the most obsessively compulsive amongst us marvel at their spatial expediency.
I kind of wish my children's room was even smaller now.
TOP ROW:
• Sleeping in the Closet
• My Room: Aleena
• Closet Turned Reading Nook
• A Room of One's Own
• Creating a Nursery Out of a Closet
MIDDLE ROW:
• Make a Closet Into a Mudroom
• Smaller Cooler 2009: Jonas' Walk-in Closet Nursery
• My Room: Colin
• Simon, Levi, and Josie's Shared Bedroom
• Eloise's Novel Nook
BOTTOM ROW:
• Turn a Closet Into an Itty Bitty Nook
• Eliot's "Dutch Cupboard" Crib
• How To Fit Two Kids In a Closet and Make It Look Cool
(Image credits in original posts)
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The Big Book of Small, Cool Spaces 
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How To Cook Tender, Chewy Wheat Berries on the Stovetop
If only I had extra closet space. Unfortunately if I had another closet, I'd use it as a closet. Great ideas though!
I showed this to my husband and he said "But then where do you shove all of your junk? These people obviously don't camp." He has a point. Maybe they have basement storage or a garage and not just two closets for all of their worldly junk.
I love these closet conversions - as one of 6 children, I used my half of a reach in closet as a reading nook but my family thought this was odd. The answer to where do you put the junk is that you don't get/have/retain the junk! Really - just less stuff.