I like your idea of displaying them, although I'm too scared of them getting dusty. All of mine are in their dustbags. My plan is to have a gigantic closet one day and put them under glass cases with special lighting like in museums. 

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Mine are in a cabinet I got at ikea. I used to keep them in their dustbags, but I think they are ok in the cabnet now. If I can figure out how to post pictures I will post one!
I store mine in their dustbags and then in their own Coach store box. I've taken a picture of each bag and their matching accessories that are in the same box and put the picture on the outside of the box. This way I know what box to take out when I switch bags and I can also see pictures of all of my bags to remind me what I have.
Here is the Ikea cabinet. It's missing a few bags though. Sorry it's so big, I wasn't sure how to make is smaller!
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Oh, I like that! Do you mind if I ask how much? I can't go on the Ikea site or else I'll get sucked in for two hours!