Imo an alcove is all you need. And I like my privacy.

Depends on the price point of the house. In my area it is common to have the w/c completely enclosed with a door (and a window if possible). Having it out in the open or in an alcove is standard with starter homes or older homes that haven't been updated. I suspect this may be a regional thing though.

When we're done with the home it will be on the high end of entry level for our area (MN). Within a mile radius, homes range from $200k-$1m, and I think the toilet doesn't have to be fully enclosed. However, I'm wondering if one of us stinks up the bathroom :-/ that an enclosed toilet to contain it would be nice. First time living with another person for both of us.

You have given two excellent reasons to have it in it's own room!

If in its own room, you'll need a venting system, for that room.

Venting wouldn't be an issue, but if most couples don't have issues not having an open toilet we'll go that way. I didn't know if having an encoded toilet is up there with double vanities.

Will this be the only bathroom in the house? If not, there's always a second option in case one of you has to go behind the other. :) But most of the time, if you have a vent fan in your bathroom, that takes care of the problem in a pretty timely manner.

There is a second bathroom :-) and we'll be getting one of those awesome Panasonic whisper fans that should take care of any "problems" lol.

I knew someone who's toilet is enclosed and there is a large window there and he shot a deer out of it. I prefer just an aclove myself as I get claustrophobic.

Tell your man no!