Increase cupboard space by using a serving tray as a shelf divider.You'll need a tray almost as wide as the cupboard's depth. Cut a piece of nonskid shelf liner to fit the tray so glasses stay put and rims are protected.
Instead of putting your hand towels on towel hook, consider using large antique door handles. This might work better for a smaller spot on the wall where a bulky towel hook won’t fit. It is also more secure and the towel is less likely to slip off.