Can I move the electric breaker panel a little, and put in smaller closet?
You cannot do what you propose. This would create a new installation that would have to meet current code. As you describe this would not even be close to making the clearances. 

You can however flip the panel around 180 deg where it is now and cover it with a picture or something else that is temporary. You could even simply paint the cover the same as the wall so it may blend in better.