We agreed that if we built something on wall 7, even though we might not be able to open the door back against that wall, it would be a great use of that space. Keeping with the 12 inch depth of the rest of Jim's closet, we would still have 32 inches of clearance which is plenty of room.
I built a very basic shelving unit measuring 92 inches high (to avoid the electrical box) by 43.5 inches wide by 12 inches deep. The lower half would be for Jim's shoes, and the upper half for towels and toiletries since we don't have a linen closet in the master bath.
I will be adding upper trim when we have picked out a style we like, but for now, I couldn't be happier than to have 9 shelves measuring about 3 1/2 feet wide for storage. The pictures aren't the best ever because I can't stand back far enough to get the whole giant thing in the viewer.
Making progress... :)