When I was perusing the photos - Too much stuff out makes me feel anxious.. Maybe you too since you do not find the room inspiring.
I leaned towards taking down some of the shelving on the walls. You have all the fabric organized in the boxes - so - put them into a different shelving situation - maybe hang those shelves in the foyer. I agree that you should also scale back the pegboard... Paint it a bright color - so even when your tools are hanging on it - the background pops. Finally - use the opened up wall space for designs.. Photos, collages of quilts you might like to tackle some day, even just a painting that sooths you. Paint the walls a soft buttery color... Just my 2 cents.