Anonymous wrote:I would try and do an "upscale" version of a mudroom.
http://www.apartmenttherapy.com/make-an-entrance-organized-mud-164335
These are good ideas. Also, something to think about for the future, e.g., after school activities, sports.
If you can see your family room from the kitchen and the kids can play safely there, I wouldn't make a huge concerted effort to relocate toys. I would take a look at the floor plan b/f investing in any expensive furnishings, to see what would make sense in terms of knocking out a wall. (It could always be made smaller and just be a foyer or the wall taken out completely. Depends on what you need.)