Thanks for all of your thoughts. I was thinking the same thing about
the DVD player. I really like the thought of inset shelving, but that
would put a large hole in the wall. Still might consider it. I think
setting up a cable and power outlet in the inside of the closet is a
pretty neat thought. A small hole for cords would be fine since a
picture or something will be there if a TV is not. I don't have any
experience with this but imagine I could find something online that
shows me how or find some basic pricing for someone to come out and do
it for me. I was thinking there might be some way to run infrared
from the devices inside the closet and mount a little eye on the TV so
I wouldn't have to worry about bouncing signals around. Not sure if
something like that exists.

Thanks and let me know if there are any other thoughts!