classroom enviornment

I am in my first semester of an education program.  Recently in class
we talked about the environment of the classroom and of it really
effects learning.  I'm not 100% positive where I would place myself in
terms of this issue, but the more i think about it the more I think
the classroom environment plays a very small role in the development
of the child.  I do think it is nice to have decorations around the
room so the kids feel welcome and have something to look at, but I
don't think a lack of decorations would hurt the developement of the
children.  I am curious to see what other future teachers and current
teachers think about this.  Am I crazy?