Because I use all of my main living area for daycare, it is all mushed into one giant livingroom/daycare space.
I have my diningroom with a playhouse, kids table and chairs, book cases, other toys, and in my livingroom, we have another bookcase, drawers FULL of more toys, other toddlers toys, foam chairs etc.
If we had a 'playroom' or 'rec room' designated solely for daycare space, i would revamp it to look like this:
-Dress up corner, trunk, mirror, coat rack, clothes, purses, shoes etc
-Reading Nook, chairs, bookcases
-Music Section, cassette player, kids toys, stools
-craft corner, kids table and chairs, smocks, easles, art hanging on wall
and of course, a wide open space for floor games, ride on toys, tumbling etc

this is of course all in my dreams. in the mean time, i step over toys to walk around the house