Full height cabinetry allows for easy concealment of brooms/mops/vacuum cleaner. Having the washer and dryer separated creates more benchspace in an already tight area. Perhaps framing the dryer with cabinetry would create a more streamlined look.
i want to do something like this in our laundry closet :) Laundry organization ideas. Some great picture ideas on this page for getting the most out of your laundry space no matter how much room you have - from closet laundry nooks to larger spaces.