Our shelf mod only takes up about 2/3 of the closet, so there is room on the right side for "nice" clothes. When folded down, the nice clothes are on top and hopefully won't get wrinkled.
The left side has three shelves, we put our foldable items in there. I designed it so that each person in the family had their own shelf, in order of height. Somehow during the kids' growing years I ended up on the bottom.
Now that the kids don't go with us that much, we seem to have tons of room for stuff
.