I know it's nearly been a year since this thread has had any activity, but I'd like to add to it a bit. Pegboard is one of my favorite things to use in my garage, but you can use it practically anywhere in your home. Playrooms, closets, kitchens, bathrooms, laundry rooms, kids rooms, basements, and anywhere else you wish. You can paint it whatever color you want, and there's simply no limit to how many different ways you can use it. But, the best part of all is how inexpensive it is (including hooks, baskets, and bins). Compared to fancy shelving and storage systems, you're not going to find a better deal financially than pegboard.
It depends a LOT on the age of children using the playroom, I suppose. Pegboard is GREAT for organizing sewing supplies - place hooks available at your local hardware store into the pegboard and organize spools/bobbins of thread, hang scissors, tapes, many sewing notions. The same could go for little girls "dress up" jewelry, hanging necklaces, bracelets, and rings out for display when not in use - hair ties, too. It could also organize certain crafts, such as scrapbook scissors, etc. Drawing an outline of each hanging item helps with clean up, and adds a "puzzle" effect.
You could also suspend corkboard or chalkboards from the pegboard for an art center of sorts, for drawing, or displaying works of art. Pegboards are great for storing artificial flowers, and could make a beautiful "living wall mural" of sorts when filled with brightly colored flowers and greenery. You could even go as far as to paint a scenery background of a home and yard with a fence, sun, sky, etc., with your little artists, and add "flowers to the garden" and paper "birds" in the sky for a 3-D type mural!
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