That's the first time I've ever heard someone suggest that keeping an instrument out of its case saves space. Unless Chris and Carol have no cases for their instruments, the cases have to take up space somewhere, and they'll take up exactly the same amount of space with the instruments inside them. Some of the handier lute players I know-- Jim Lidgett and Bob Clair come to mind -- have rigged up floor-to- ceiling shelf systems that can house a surprising number of instruments in a surprisingly small space.
Except that cases can be stored away in a closet where they are less accessible. -- To get on or off this list see list information at http://www.cs.dartmouth.edu/~wbc/lute-admin/index.html