B.P.
I don't know anything about a toddler and a newborn sharing a room, but I can tell you how wonderful it is to have a toy room. We have my two boys in a room together (ages 3 & 6)so that all their toys can be in a toy room. Not only does it keep the house neat (no toys strewn everywhere), but it makes the bedroom a sleeping place not an awake place. I find this helps with bedtime. I also think it will help them learn to get along with others and share. But, that's yet to be seen!