The chute ends up in my basements smack dab next to the table I have which is right next to the washer and dryer. I have 3 big baskets for Colors, Whites and Do Not Dry-Wash Cold Clothes (usually always mine...I do not need shrinkage!).
I usually always do at least one load a day even if it is tiny. I never let my laundry get out of control because it is not my favorite thing to do and ends up being an overwhelming job. So straight out of the dryer, I fold and put the clothes in smaller laundry baskets, each labeled with a every family member's name. (I found the smaller baskets at Dollar General.)
When these get full, usually by Saturday, each child has the weekly chore to bring up their basket and put away their clothes in their closet.
I have them hang EVERYTHING but socks, underwear, jeans and shorts. This means, no stuffing folded clothes into drawers. I have to teach the younger ones HOW to put everything away...but it's worth the time savings in the long run.
Jeff and I do our baskets, and the baby's, or sometimes (more than not) I assign that chore as a Saturday job for one or two of the children.
When they are done hanging and putting away their clothes, they throw (and I mean throw) their little basket back down the basement stairs. Laundry done!