My first thought is more kitties!! It's a nice room, but it seems a little too big to me. Maybe use shelves/screen/sofa to separate the room into a music area and a play area? I'd also put the low blue table out in the middle of space so it could be more easily used as a train or play table. I love the trees that you painted, maybe a similar color on one wall to brighten up the space a bit? You have a great canvas to work with.

Another thought - I'd put the futon/couch in the bay window to create a cozy nap/reading nook.

I think a teepee would be perfect! There are a ton of options, either design mom or ohdeedoh recently did a round up of what’s out there.

I also think dividing the space into separate, functional areas would be great. You could have a quiet nook with the teepee, a little book shelf, and maybe some cushions, the kitchen area, etc.

If your little guy is into push toys (like my 1 year old is) you could make a mini-parking lot for them all and tape out individual spots with painters tape. Oooh and if you went further on that theme, you could tape out some streets for him to push along.

Good luck!

WOW! That is a dream of a play space, and I love your trees, too. My tip would be to create zones for different uses (play kitchen, art station, reading nook, etc). I do love that little nook and wall by the stairs- this could be a great reading nook and low bookshelf zone. I agree with squirrelgirlie about floating tables, etc, in the middle of the space. You've got a great start!

I would love to have such a huge space for a play room. I would definitely create separate spaces. I find that kids play better when a space is well defined. A quiet space for books and pillows, an art space with table and easel, a make believe space where you could put the play kitchen, an action space for all of his push cars and so on, and a teepee is great fun (my son loves his)...and the table should be away from the wall so your son can get all around it - this could be a great spot for trains, cars and eventually legos and construction. Have fun.

I think a play tent/tee pee is a great idea! Also, I would recommend stations, a la Montessori. Low shelves where toys have a specific place and are grouped by purpose--for instance, a kitchen area with play food, cooking utensils, a dress up area with a mirror (either use a coat rack or a toy chest to store costumes), a music basket with musical instruments, etc. And definitely a comfortable reading area with access to books!

I feel like the middle of room could definitely use something fun and dramatic--a large, stylish play table with a sofa and chair flanking it perhaps?

To take advantage of the height of this room, maybe a few posters? There are some fantastic alphabet posters on Etsy or you could try flea markets or antique malls for fun, unique art that isn't technically for children. Mobiles are also great for bringing down the height of a ceiling and, in my opinion, making a children's room more interesting. I may just like mobiles though.

We just purchased my son a chalkboard banner from Discount School Supply in their winter clearance sale and it is quite popular. And huge! 3 x 5 feet.

A children's table and chairs set from IKEA or somewhere nicer will go a long way as well. Ours is indispensable! To save money, I would go for a thrifted couch covered in a fun (washable) tapestry, posters in inexpensive poster frames, low shelving (check out media consoles on Craigslist or at IKEA--they are the perfect size and if they are open and more contemporary will hold baskets of toys and books very well) and an activity table.

If I had that kind of space, I'd probably use the 2x5 Expedit shelves from IKEA to divide it up. And get a little table and chairs set.

So many good ideas already. I agree, a tent or a Teepee is a must. Our kids love theirs:
http://www.flickr.com/photos/adesonia/1409216524/

A soft sheepskin or shag rug with a small bookshelf or rack would be nice.
http://cgi.ebay.com.au/NEW-Wooden-Book-Organiser-Great-for-office-or-home_W0QQitemZ270335551398QQcmdZViewItemQQptZAU_Children_s_Furniture?hash=item270335551398

The Expedit from IKEA is great for toy display/storage.

I think a nice long play table is a must as well-- can be uses for trains, legos, or for arts and crafts.

Martha has a nice article with some inspiration:
http://www.marthastewart.com/article/decorating-a-playroom?autonomy_kw=play%20room&rsc=header_7

My DD has a dress up area as well:
http://www.flickr.com/photos/adesonia/2591334736/

Check these out:

http://www.ohdeedoh.com/ohdeedoh/nursery-tours/mini-nursery-tour-otis-in-the-house-023366

http://www.ohdeedoh.com/ohdeedoh/blogging/blogging-wondertime-magazine-creating-a-playroom-031053

http://www.ohdeedoh.com/ohdeedoh/nursery-tours/nursery-tour-vincents-montessori-inspired-room-018643

A stair stepped storage something like this:
http://www.target.com/Newport-Raffia-Cube-Collection/dp/B000ICRNA0/sr=1-19/qid=1233607402/ref=sr_1_19/183-0650923-9633303?ie=UTF8&rh=k%3Astorage%20modular&page=1
along your stair wall would help collect stereo (maybe?) or toys. Plus it's a better place to set those items that need to be brought upstairs rather than putting them on the steps like I do. No one's tripped yet, but I'm tempting fate! Gomez would love to perch there, too, I'm sure.

And what about a Waldorf playstand?

Thank you so much, everybody, for your amazing tips, and especially for all the links. They're really inspiring. It's funny, I always thought River needed open space to run around, but now I realize he actually likes to run around things and squeeze between spaces.

I've already added a table & chairs beside the kitchen (just moved it from a different room), so much more fun now. I can't wait to find or make a teepee type thing, and I think the stereo nook would be perfect for reading instead. I love the separate activity areas idea...I can't wait to start working on all this!

I'm with belel on the Waldorf playstand idea. A couple of those with some large playclips and fabric would be wonderful. Young children love to build their own forts and houses. These would then store away easily when not in use.

Elizabeth
www.emblemorstain.blogspot.com

My girls' pre-k teacher built a cool feature in her classroom. She used PVC and sheer fabric to build an area that feels secluded for the kids but still lets adults supervise what's going on inside. It is kind of like this but with a flat top and different fabric.

http://wintertreedesign.com/blog/?p=96

I'm thinking you could visit a preschool or Montessori school and get some wonderful ideas.

That little nook for the stereo would be great for built-ins. You could keep the stereo equipment there, but just keep it hidden. It would add more storage... can you tell I live in a craftsman... MORE STORAGE PLEASE!

We have a little spot in our playroom similiar to the stereo nook. I bought a tension rod, and some fun dwell curtains from Target and it was an instant fort. Throw some pillows in there, and he'll have a blast! You can also lower the rod for puppet shows. I went a step further and painted a tree house on the wall behind the curtain. The nice thing about the tension rod fort is that it can easily be taken down later. I aslo agree that seperate areas for play work well. It's easier for clean up too, to have distinct areas for different types of play.

I agree that stair-stepped or cube shelving would add a lot to the space! The spot beside the stairs is crying out for a nice shelving unit; that would also be an excellent place to add a bit more color with an accent wall behind the shelving.

I think a large mobile would add something, too. Birds, maybe?

A chair/table set nearby the play kitchen would also be awesome.