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small bathroom: 1/2 or full ?

I have a small bathroom to remodel. It is the downstairs bathroom in a 3 bedroom/2 bath house.
It is between the kitchen and the guest bedroom. Expanding the footprint is not in the budget. The footprint is approximately 5'x5.5'. It currently has a bathtub, toilet, sink. It is only used as a half bath (who wants to bathe in that tub?!), This bathroom gets the most household activity of the two. The upstairs bath has a nice large shower (no tub).

I can fit a tub (60in.), much smaller sink (10"length x 21" wide), smaller toilet (27.5" length x 15.5" wide) I'm considering moving the tub to under the window; the toilet to the SW corner.
But it is tight, and awkward anyway you put a tub or shower in the room.

Do I remodel as a half bath only? First impression will be expansive, and welcoming.
How important is it to install a full bath (shower or tub)?; considering that resale is motivating the remodel.
Will going from a 3bed/2bath to a 1.5bath significantly impact my home's value?

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