Paint the hallway wall a neutral color, such as a cream or taupe, to allow the accents to stand out and to make it easier to coordinate fabrics.
Install a curtain rod to camouflage the utility area. Use a pattern or print that contrasts with the color of the hallway walls.
Install pocket or French doors with frosted panes to conceal the work area. Paint the doors in a complementary but contrasting color from the hallway walls for interest.
Create a simple gallery of artwork or photos on the hallway wall to take attention away from the work area.
Add wall sconces to make the area warmer, less drab and less utilitarian.
Hang a row of decorative hooks or a shelf with hooks to add depth to the hallway space; the hooks will also serve as functional hanging space when doing laundry and other projects.