in my house, each kid has a dresser, and worn-but-wearable clothes go on top ... with the exception of hang-up type clothes (dresses, button-down shirts) ...
hang-up clothes get hung on a hanger and hung back up on their rack, on the far left (their clean clothes get hung on the right, and there is a separator-hanger (one of those ridiculous kind that come with Christmas Dress Outfits, so the hanger is nearly the size of the dress) between the clean and the worn clothes. This has the added advantages of telling me whether a piece of clothing never gets worn (by default it ends up in the center), and also making sure the most-recently-worn item can air a bit before it is squashed up with other clothes (just shove everything to the right when hanging the item on the left).
each kid has a dresser with a stand-alone clothesrack on the top of the dresser (so, from the top down, there is a clothesrack with hanging worn clothes on the left and hanging clean clothes on the right, then a stack of worn playclothes on top of the dresser, then a dresser full of clothes (oh, and I sort the clothes into type but we just toss them in the drawers unless the kid wants to fold them).
this system works the more traditional way, too ;) ... my "worns" go on the floor or in a separate section of my closet (and I try to keep my closet editted enough that there is room for them to air if I leave the door open--lately I've bought too many things at Goodwill ;) and I've been airing items on my robe-hook before I hang them in the closet). When my Ex still was here, he used the same method, and I think he still does.
The other piece I will offer is that I *don't* want my kids to put their stuff in the hamper ... even the oldest has yet to show that she is awake enough at the end of a long day of school (or anything else, but especially after school) to competently decide what is dirty and what is not and most importantly to NEVER put anything that is at all wet into the hamper ... so we have a 'dirty clothes pile' by the hampers, and I still myself go through every item and sort them into dirty/worn ... and make sure every item that is wet gets hung to dry (I mostly use one of those columnar shoe racks, with the many levels, to hang things to dry). (We go to a school that believes in outside every day playtime unless there is lightning ;) ... so wet mud and wet sand and general WET are a big concern ... plus now we don't have a car, so between the bikes and waiting for busses ... well.)