(Picture from here. Click to enlarge.)
We don't keep toys in Red Chief's bedroom. It seems to me that a young boy who doesn't want to go to bed isn't going to be helped by a room full of toys. We keep a dresser full of clothes, a box of books, and a reading chair in his room. That's all besides the bed.
I'm thinking of converting our front room into a playroom one day, but for now, we have three shelves of toys in the living area. I rotate them as Red Chief loses interest. When I keep the quantity of toys in rotation to a minimum, the living area is usually manageable (although messy most of the time).
Where do you keep toys? Do you like having your kids play where you can keep an eye on them, or do you like to keep the mess and noise contained somewhere else, like bedrooms or a playroom? What are your rules about picking up and how do you teach your children to clean up after themselves?