We redid our closets with closetmaid... the kind that's completely adjustable. My two daughters share a closet and everything is in there since there is no room in their room for anything besides their beds. We put the hanging rod pretty low and then lots of shelves above that with small bins for socks, undies, pjs, swimsuits, and pants and shorts are just piled on the shelves (my idea was to have them neatly stacked and folded and sorted, but my girls aren't so fussy about that and it seems to work for them, so... the main thing was having the shelves not too far apart so the stacks don't get too high). I have all their seasonal stuff or slightly too big stuff on the very top shelf and we keep a step stool in the closet so they can reach all the shelves but the very top (all their clothes are reachable without the step stool... which is why having them adjustable was really important to us so that we could move things up as they grew... but they keep all their miscellaneous personal stuff in bins on the higher shelves). On the bottom they have two bins for dirty clothes, one for darks and one for lights... most of the time I end up throwing them in with mom and dad's laundry but they always have the option of throwing them in the wash themselves if they start to overflow before I get to them.
I kept all our dressers though, just not in the room. One we now use as a tv stand and keep all our videos and electronics in the drawers, one is used to keep toys, games, art supplies in the living room (not their 'official' home, but it makes quick clean ups a breeze for when we are all hanging out in the living room making our own project messes and have a surprise guest stop by we can just throw everything in the drawers and easily get back to whatever it was later), and another one we have near our door as a microwave oven stand and each kiddum has a drawer for them to dump all their stuff when they first get home, also to keep things they need before they head out (uniforms and paperwork for example)... again, not the official home for things so whenever we have a spare five minutes we go through those drawers and put stuff away, but it makes getting out of the house a breeze, and solves that problem of stuff getting misplaced and tossed all over when we first get home and are anxious just to relax or eat. We also have a dresser in the garage where we keep tools and also some outdoor toys and to set groceries on when we are taking our shoes off to get in the house (or stuff we want to take in the car while we are still gathering it together). I had a dresser in the laundry room but it broke (I kept the mismatched socks, mittens, gloves, hats, rags and stuff that was too small and needed to be passed on in it). I love dressers... just not in the bedrooms I guess! As others have mentioned, it's really nice being able to see all the clothes you have, things tend to get buried and forgotten in dressers... I've found we all make better use of our wardrobes being able to see everything everytime we open a closet as well as knowing what needs to be washed, what needs to be purchased and what needs to go.