After replacing the drywall and priming and painting the entire foyer, we made a plan about what to do in the nook.
Before new drywall and paint.
Eventually we will be buying/building a bench and we decided to build a coat rack. Having unsuccessfully used drywall anchors for the coat racks already (Erica ripped one out one day), it was decided we would screw board to wall, fill holes, prime and paint, and add hooks to the wood. These things aren't going anywhere.