I got the next steps done. First I cut down the wall that conceals the vacuum and such. I trimmed the felt and gooped it up with contact cement and folded the felt in place. Then I added lights. As I mentioned previously, I had two porch lights that I saved after adding two SmartLights. They worked out fine. I don't have clear lenses for them yet, but they are working OK for now. I put the light switch right inside the garage rather than in the battery compartment, thinking that it would be more convenient to have the switch in the area I'm working in. Sorry, no picture.
Then I moved the shower drain closer to the water heater similarly to Larry's.
The black board in the second picture is the piece I cut off the long wall. I will probably mount it where it's now leaning and attach the Manabloc to it.
Now that I have lights I will look into moving the converter and the auto transfer switch box up on the outside of the storage shelf.
Here's the basement wall with the long piece trimmed and the hinges in place. It doesn't look much different than in the previous pictues, but now the door butts up to the wall and the hinges are flush.