far from! i've had that conversation about a gazillion times!
one thing that helped was getting one of those 3' tall plastic drawer things, i made a cover for it, so it just blended in with the living room, but i had space for things i used alot (1 drawer for tools, another for yarn and needles, another of clay, and one of clay tools, etc)
i also keep projects on trays, that way i can work on one project on the tray, and keep stuff for it in a shoebox, and if i need to pick up, takes a minuet to bring tray and box in the back room,... (yarn things go in bags, with the same idea)
it also made a great surface to put things on, and was right next to the chair I craft in, which made it easier to pick up
i'm also working on an ottoman & coffee table, with spaces underneath for projects (i can't sit and watch tv without something to do with my hands!)