We ended up with a very organized and usable closet space.
So when it came time to make use of the closet in the nursery we knew we needed another custom closet build from good ol' Dad (so I asked him and I used "daddy" which gets him every time).
The closet started out like this (another single rod, seriously?!):
And after all was said and done, it now looks like this:
With these awesome curtains I found at Ikea.
We now have lots of storage, rods for tons of baby clothes (which we keep buying-they are so tiny and cute), and cubbies for toys and blankets and other nursery items. We love it!