Spiff - I think that this will be a good look, as long as you do the finish work that you've described.
Questions:
1. Is it one continual long closet w/ 2 doors?
2. If not, what's in between the two closets?
3. Judging by the picture and what appears to be the kitchen, it looks like the closet is not extremely deep. Is this the case? If so, have you looked at how much this is going to trim off of your walking space? If it's a lot, you may actually hurt your future sales options. People are picky about their closet space.
Suggestion: Be careful when you first cut into the wall. With two electrical switches nearby, who knows if there is any crazy wire routing in there.....or even some pipes running through. It may be worth cutting out a small horizintal strip to take a look at what's behind there before you dig a huge chunk of your drywall out.
Good Luck
