I loved small areas and places I could hide and read when I was a kid. This would have been cool, and a lot easier than removing all the hard toys from my toy chest, laying blankets on top of the stuffed animals and closing the top on myself.
A small nook with a light, pillows, shelves, and drawer storage. Not only is it relaxing but it would make great use for the space under stairs, especially in a finished basement. It also looks comfy enough for children to use for sleep overs or severe weather.