We are also wanting to replace the lighting. I forgot to mention that! Right now it looks like something out of a Star Wars movie!

Bathroom looks rather small in size. Is that a single flushmount fixture you have? Is it flourescent light? Research LED lighting for that problem. I would do a mirror over the sink, and open shelving as storage above the toilet. Because the bathroom is small, you don't want to install closed cabinetry - it will take up too much space visually and seem more closed in. Open shelving keeps it more airy in feel. Also, try some towel rings on the wall opposite the sink. Good luck!