Time for some Potty Talk

We are thinking of reconfiguring our giant-but-solitary bathroom into more of a dressing room.  Now.... WHY would you make the only potty in the house a place to leisurely dress and do your daily grooming?  Because your husband wants to do it and, if your husband wants to do a project, you jump on it.

The deal is this.  All of Bugsy's clothes are in the bathroom.  In the top drawer of that two drawer dresser that used to be the changing table.  The rest of her clothes are in a laundry basket in the next room.  Classy, right?  So I nicely ask Hot to give me back the bottom drawer and he says.... No.  He likes having that drawer in the bathroom.  So back to the planning board I go.

So here is what we have to work with.... The photos are a bit old but it gives you the idea.

So here are some options:

1.  Take out the top shelves in the big square shelf thingy and put a hanging rod across for Hot's clothes.

2.  Put more of Bugsy's clothes in wicker baskets in the shelf thingy.  Note:  There are currently 3 baskets in there..... one for jammies for each kid. 

3.  Put in some sort of closet system from ikea.

4.  Take out everything and start over with.....

I'm completely at a loss.  I don't know what to do.  The longer term plan could involve a total remodel of this room so I'm open to ideas about that as well....