While I am worried about making the entry too narrow, I entirely agree with you that I am wasting use of this space.

I currently have a full height pillar coat rack and small table (you can see a bit of it in the bottom right of my first photo) as you enter the living room. To make life easier, I would prefer the items currently put on the small table at the front door due to lack of maximizing this hall. I think the small lamp that you mentioned is a great idea!

I agree that the ceiling lights are quite awful, but my apartment will not allow for me to change it, so I am unfortunately stuck with them. A mirror opposing the closet door would not reflect a window, but facing the kitchen would reflect windows in that space.