A laundry room can be large or small, in a closet, entry, hall, or basement. It can easily be bright and cheerful. Whenever possible, I try to keep the laundry room near the bedrooms...that's where most laundry comes from, and goes to when it's been washed.
When wash-boards and wringer washers were replaced with modern washers and dryers, people found space for them in the basement, However, why put them there? We put dishwashers in the kitchen, where the dishes are...doesn't it make sense to do the same with clotheswashers and dryers?