At your entry area, you could put a hook system to replace the clothes rack or even mount a pegboard wall painted a great color to hold lots of stuff, including the guitars! How about making your own desk with a pair of new sawhorses and a piece of tempered glass or wood for the top? in terms of the bed, I think it would make a great couch if you follow through on your idea of pillows against the wall and get a fitted cover that can tuck under the mattress.Shelving doesn't have to be expensive and it's an easy project to get it up on the walls. That will take away a great deal of the clutter.
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