I have a word wall up in my room. I have had one for a good 10 years, probably more. It has changed over time from the beginning til now, but I always had some sort of word wall.
I love my word wall I have used for the last few years. It is bright and cheerful, plus super useful. I haven't had it up for long, as we have been waiting for the fire marshall to come and they haven't blessed us with their presence. And they have new guidelines which are not kind to a classroom setting.
Anyway, I love my word wall. I read somewhere once to make the words different colors. So, I did. And I love how it works. Within each letter, the words are on different colored paper. So, if a kid asks me how to spell a word that is on the word wall, I ask them what it starts with, then I tell them to go find the "______" card under that letter. They have to find the word by looking at the beginning letter and then finding in on the color. Eventually, they will learn how to spell it. And eventually may be the end of the year, but they learn how to spell it.
My kids are just starting to use it for writing and some run over there all the time. One year I had kids who were up and down all day with writing, but they had some of the best writing from first graders I have seen. I'm not the greatest at putting the words up in a timely manner, so I need to get better at it. And if the fire marshall tells me I have to take it down, I may just cry!