They have created a niche for putting shampoo, etc in and framed it. I feel I'd grow tired of it after a year or so, but if you love it... that appears what they have done.

Yes, I'd be willing to bet it's a tile.... would not hold up well unless it was a tile of sorts in a shower.

It's very fresh looking... I like it. If it's a very long term home for you I say go for it.