Walls of craft room...dun dun dun...

Besides working on the Christmas decorations etc., my primary focus has been cleaning/organizing house so that there's some order and I can continue on with projects.
The last two nights I've been working on the craft room. It's hard to believe it started like this back in May:

Now it's like this... well with some furniture hodgepodged in it.. and clutter.. and unfinished projects...

Regardless, now I'm having issues coming up with how the flow/layout of the room will suit it best. I have these two blank walls that are in desperate need of vertical storage, shelves, drawers/cabinets and an additional work station...

 This is looking at the south wall... No idea what to do with it! Thoughts????

This is looking at the east wall. For the east wall I'm thinking of doing slat wall storage like this: 

I already have a piece from the Habitat ReStore that's 36"x46", but again no idea how to treat the space below. I really don't want a bunch of those cheap plastic drawer bins... Hmmm

Ideas welcomed! I'm at a loss.