Related links from Lifehacker (these are great)

Cable Management:

http://lifehacker.com/search/cable%20management/

Clutter:

http://lifehacker.com/tag/cluttercleanout/

EDIT:

http://lifehacker.com/search/desk/

I used to have this problem as well, and in my experience the secret to managing the mess of cables is to remove everything that doesn't have to be there. In this case, he could move the modem and router to another room (or different area in the same room). Though it would decrease the throughput rate, he could also attach the USB hard drive to the Airport and access it over the network. Also, since the only USB devices I see are the keyboard and mouse, he could get rid of the hub as well, and with all that stuff gone he could easily get away with a single power strip instead of two.

Now what used to be a huge rats nest of cables has been pared down to the MagSafe, the speaker power unit, and a single power strip, which is much tidier. My personal setup is very similar to his, except that I use an external screen with my MacBook instead of the laptop screen, and I connect it all together with the new Henge Dock that just came out.

you're correct in some ways, but it's not that easy. plugged into the usb hub are:

keyboard (could be replaced with wireless) external hard drive - time machine. i prefer it this way than over wireless iphone dock (hidden underneath macbook) speakers - they are usb based

the second power board is simply there because i may need it in the future.

OK, it sounds like you have more USB devices than I could see in your picture, so the hub is necessary. Still, I think you should at least consider moving your modem and router, especially since it doesn't look like you connect your MacBook via ethernet.

you're right, i don't, but that's where the phone point is, so i'm kind of stuck with it unless i re-cable the house somewhat.

i'm interested, has anyone else got a different take on cable management? surely other HN readers have their own solutions?

I'm a birds nest man myself. My needs are constantly changing so I just leave them in a giant tangle on my desk. It may not be aesthetically pleasing but its extraordinarily functional-I can grab any cable at any time, and making room for another project is as simple as shoving the pile of cords into a denser pile.

Here, here.

Cable management is essential for a data center where multiple sets of maintenance hands, multiple owners, SLAs, fire codes, and cooling/venting needs demand organized layouts.

Cable management is also important for tight spaces (inside walls) and extremely low-duty-cycle, but mission-critical wiring such as a home's breaker-box.

Is it necessary for the typical modern desktop with a few AC Power, networking, and USB cords?

Um, NO.

I generally agree that it doesn't matter a lot, but I've found one case where having well-arranged cables is useful: if you want to move the equipment a short distance temporarily (for example, moving a tower case out from between/inside furniture, or turning a monitor around to show it to someone else). Having the cables to the device arranged so they all have sufficient slack, and are not tangled with each other, means you can do this without having to unplug anything (and possibly shut down/lose use of the equipment).

Ikea cable trays under the desk: http://www.ikea.com/us/en/catalog/products/50035115

And on the desk I use some plastic tubes that hold several cables together, also from Ikea.