I do something similar. I hang any good clothes, including those for formal night on plastic hangers, fold over and put them flat in my suitcase. I prefer plastic because the wireones can poke holes in stuff. But, having things on hangers definitely does make unpacking a lot easier. I never use space bags because I need those dirty clothes at the end to pad my souvenirs. Plus, I don't take a lot of clothes or shoes, I used to overpack clothes, but grew out of it....and out of some of the clothes!