Thanks to my mother, I have many sets of dishes. For breakfast, however, I use one set because they say "Good Morning!" so very well with the colors. I set my table in layers - chargers, plates, bowls, etc., depending on what's being served.
Yes, guests DO notice the dishes. I've often had folks, mostly women, look at them and say, "Hummm....Villeroy & Boch" and then lift the plate to see what's printed on the underside to confirm..."Yep."
For lunch and dinner, I have all kinds of place settings, depending on what the day holds and what's being served. For lunch, if it's a day of swimming, scuba diving, snorkeling, etc. then I have a little less formal, more "fun" kind of setting with colorful fish-shaped plates, for example. For a hot, sit down lunch at a designated time - that's a different place setting. You get the picture. And yes, I do struggle with storage space for all those dishes. I had to tell my mother to stop sending dishes! Just this week, I decided that I didn't have room for "everyday dishes" that I would use for myself (Corelle) and gave them all to someone who was moving into a new residence and had nothing of her own.
And then there are all the table linens...I had to buy a decorative trunk just to store all of them!.