Thank you for your input. Yes, you are right, moving the door or widening it so that it fills the closet would definitely maximize the space. Unfortunately, this closet is in the bathroom (I didn't design it), and the vaniety is on one side and the door to the bathroom is on the other. I real thorough renovation of the entire area would do wonders for the design, but the house isn't worth that kind of money, I am afraid.
I do like the idea of having additional rails up high. The closet is quite tall, probably standard 8ft or so. I definitely could have two racks of clothes.
Is there such a thing as a closet kit that is designed to roll out or swing out of the closet?