Would love to but the ceilings are only 7' and can not be raised so if I raised the floor it would be even shorter.

I just see people stumbling...especially at night.

Tapered transitions are available in wood to match the floor adjacent to the bathroom tile.

Flopsycat1 has the right idea but tapered transitions are typically 3/4" thick and not very wide. Your carpenter can take a 5/4" x 6" piece of fir decking (your floor looks like fir) and bevel the back edges so that it lays on an angle with the top portion even with the existing fir floor and lower portion butting up against the tile with a slight reveal. The underside of this "saddle" is supported by wood wedges glued/nailed/screwed to the subfloor. The width and angle of this transition piece is comfortable to the foot.

I would also say raising the floor would be best unless u have a 7 ft person walking in there

Is the tile floor in the picture your new tile? And, has the waste pipe height for the toilet flange already been dealt with? If so, raising the floor would be a costly option at this point. Even though most people are not 7' tall, a 7' ceiling is only 4" higher than the height of a standard door opening. In my opinion, even though there is clearance, the overall impact can be confining. I would go for whatever height I could get and deal with a transition that has no impact on the volume of space and minimal impact, if any, on going between spaces..

I was wondering if you were keeping the hardwood floor in the next room. It was not protected very well. Are you having it refinished? I would be at my wit's end about all the tile mud on that floor. I am starting a bath Reno soon and I am anxious about keeping things fairly clean and neat.

I think I agree with a couple others on raising the floor. Of course, with that said, I would have to see how much that impacts the ceiling and tall people standing in there, lol If you can raise your ceiling without a major issue, that is also what I would do. What tile are you going with? I wasn't sure if it was the one pictured or not.

Is the ceiling in the adjust room taller than the bathroom ceiling? If not, then raising the floor in the bathroom is just going to make the two feel more uniform. In my opinion if I was walking from one room into the next, I'm 200% more likely to notice a 3" step down into the room than a 3" drop in the ceiling. Especially if I''m coming from a room w/ vaulted ceilings. I'd expect the ceiling to get lower.