I don't know if closets are decorated per se, but keeping them organized makes them look so. For me, that includes matching hangers and shoe boxes.
Keep shoes in a box
I'm a huge fan of plastic shoe boxes. They can help keep shoes free of dust and off the floor, which is a must for me. BrylaneHome's set of 10 shoe boxes ($24.99), which also come in jumbo size ($29.99) for men's shoes, are a perfect solution. Your shoes can remain fresh, clean and, best of all, organized. The snap-tight lids block out dirt and are stackable, which saves space. With the see-through plastic, you can always spot the shoes you seek.
Tips for small closets
Are closets ever big enough? Probably not, although your will to keep accumulating stuff doesn't help the issue either. TLC's 10 fixes for small closets are helpful for this common problem. A few include: Go up, not out: Empty space above is an opportunity to hang racks, pegs or hooks for storage. Use space bags for blankets, winter coats and pillows, which take up space. Don't forget to suction out the air with a vacuum cleaner. Who doesn't love adjustable shelves? And every now and then, remember to "purge." Not enough room can be a hint that it's time. For more: tlc.howstuffworks.com.
We are fortunate enough to have separate closets. (If you have the space, I highly recommend it. It'll spare you a few arguments.) This allows us to organize our clothes however we see fit.
So far, we agree on two things: We like matching hangers (the wooden kind) and keeping shoes off the floor, on shelving. Everything else is different. I color-coordinate my clothes, but my husband coordinates his shirts by style instead (If that's not it, then I don't know what organizational pattern he has going on in there). He's also a lefty so he hangs shirts facing the wrong way. (Hey, it's wrong for me!)
His shoes are on a shoe rack and mine are in plastic shoe boxes, of course. Whatever I don't hang, I fold and put in drawers. He folds it and places it on the top shelf, above the hanged clothes. (I bet that's why it falls over sometimes.)
Every now and then I go in his closet and try to work my magic. OK, perhaps having separate closets hasn't really spared us any arguments.