The kids (4 and 5) have adapted to this wonderfully. It really helps them. It makes cleanup a trivial task because everything is known to belong somewhere specific.
Related to this: the recognition that everything is harder in a messy home. If you have stuff everywhere, you are paying a small tax any time you want to find or do something. Even cluttering your cupboards and drawers means you're tediously sifting through too much stuff or constantly worried about knocking something over while getting something else out. It's been especially good to avoid the dance of removing items to get the items underneath, then putting them back.
Finally: the lesson that when you keep stuff, you are paying a "tax" on keeping it. Throw away stuff you don't think you'll ever need again. It's cheaper to re-buy 1 or 2 things than to keep 100 of them for years and years. That storage space could be better used.
Bonus: If everything has a home, and you run out of homes, you quickly recognize that you have too much stuff and it might be time to make trade-offs. This puts an upper bound on the amount of stuff in our home.
Note that this could all easily sound super hardcore but it's not. It's just a general guide we have. We aren't forcing our kids to throw excess toys away and we're not writing a book about it. A flexible tool to guide behaviour, not enforce it.