closet-turned-nook love it! we do this to every closet Bear has ever had =) he loves his very own special place. Its never this awesome or large, but it is his space he gets to decorate himself. Closets as kids spaces is so great.
Would also make cute wallpaper for a diy bookshelf / dollhouse! DIY kids room shelving splash of color - transform plain kids shelves with scrapbooking paper, old birthday cards, anything to give a terrific backdrop for shelving.