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I love the idea of going vertical in a small space. This design method allows you to create vertical depth in a space. A great example of this is a wall of wardrobes spotted over at Apartment Therapy. This couple needed clothing storage in their small bedroom and used Ikea's Pax system. Although the room is small - it works. If you are going to do this, use the whole wall. You may be surprised at how mich bigger it feels then using just a portion of the wall.
I completely agree with the idea of using the wall for storage. Those cabinets from IKEA are great for this purpose.
Yes! I love this idea. For the foreseeable future, I will be renting and living with roommates so I have to get used to smaller spaces. I really love how this looks! Great tip!