Actually found this photo on my favourite photographer's site (hulahoopphotography.com), but I LOVE what her client has done with her child's wall!! Looks like magnetic paint, and child-height bookshelves. IN LOVE!
Use $4 spice racks for book shelves. If the book cover can be seen, your child is more likely to want to read it. (Terrie's note: We'd have needed about a thousand of them in our house, but I like the idea.)