We purchased another shelf and brackets to go above the metal drawers. The drawers and hanging bar are from Ikea. For two little boys with very little that needs hanging up this option works well. I don't think they'll need more hanging space than that for many years.
As you can see clothes, books (lots of them) and blankets as well as stuffed animals and keepsakes are all in this standard size closet. I was able to get everything except the hand-me-down clothing in there and free up more of our storage room space.