Need more storage? Clear out instead!

I got it into my head last month that I wanted to do something different with the kids play room.  They're starting to get a bit older and they play differently than they used to.  The space just wasn't working for us any more.  My kids aren't really big on toys, they prefer playing games and doing crafts, and our space didn't reflect that.  In setting out to change the space I decided that I needed 2 things: a table and chair set, and a cupboard to store craft supplies.
I searched the local classifieds and managed to find a great table set within a week, and for only $50!  Awesome - used and fairly inexpensive - my plan was coming together!  The cupboard was proving more elusive though.  We made the decision that we'd probably have to buy new, but if I was laying out the money I wanted it to be perfect.  I searched every home improvement and general purpose store and finally found what I wanted at Home Depot.  But I didn't buy it.  I wanted to wait awhile and be sure that it was what I wanted.  And then yesterday I had a realization - I didn't need yet another storage cupboard, I needed to clear out my crap!
As I sat at my desk yesterday I realized that I had a cupboard to the left of me that was half empty with a disorganized mess of office supplies, and a cupboard to the right of me that was full of my own personal craft supplies that I haven't opened in probably 6 months.  Behind me sits a sewing cabinet full of projects that I intend to do, but with what time?  I spend most of my time working or with my kids and husband, not sewing.  The kids  have a closet in their play area filled with games and puzzles that is poorly organized and barely functional, and a book shelf where books are tossed and messy.  We also have 2 cupboards beside our TV full of CD's and DVD's we don't watch or listen to because we have everything we want in digital format.  So why did I want to add to all of this?  For someone who is striving for a more simple lifestyle I feel like a failure.
So out of those feelings of failure, springs inspiration!  I am giving myself 2 weeks, and in that 2 weeks I tend to clean out all of these storage spaces.  I am going to rid myself of craft and sewing projects I have no intention, desire, or time to complete.  I am going to rid myself of CD's and DVD's that we do not use that we only keep because we can.  I am going to donate puzzles and toys the kids have outgrown (I do this regularly but each time I am more ruthless than the last).  I am going to completely eliminate the bookshelf in the play area and sell it.  I am going to completely clear out the closet in the play area and convert it into a closet to store clothes waiting to be ironed, our ironing board, and steamer.  The area next to the desk in our living room is no longer going to be stuffed to the gills with the kids craft supplies - I'm not entirely sure what I will put there, I'm waffling between desk storage or my own personal craft supplies.  This should be fun!

Here is the mess we're in now.... Expect big changes!