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Magical closet/small attic space design idea

last month

So we have this closet in our 'library room' that I want to transform into a magical book nook/sleep/cozy area. From the hallway, there is a small towel closet next to the room closet, that I am thinking of breaking down the wall in between ( or not?)
Also, there is a hollow unfinished attic space above it that we could also open up from the closet ceiling and drywall the attic sides to create this long about 10.7 feet (127 inch) height closet space.
I am thinking in the bottom of the closet, I create a standard 20 inch high storage bench. If we break down the walls of the side closet, the bottom bench would be 72 inches in length. Depth of the closet is 26 inches.
Give me all your out of the box, fun ideas to transform this closet space????
Also cool options for kids and adults to get up to the attic? ...monkey bars? stair storage? Any other ideas?

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