I hate it when old people fail.

A frameless shower would look nice, and a freestanding tub -- if you want one -- would take less space. We've started seeing shower "rooms" with tub in the same wet space as the shower. It doesn't look like you'd have that much space, though.
You don't see many wood floors in bathrooms because all the water that gets splashed around could lead to buckling problems. A modern tile floor would liven it up for you.
It must be a very pretty house, as this bathroom is actually quite nice!

A tub in the same wet space sounds interesting. I would like to see a picture, if you have one :)

I suggest you start by getting some photos onto your ideabooks so that you know where you are headed with this.

To start, I would suggest you paint out the yellow walls with a clean white and do the same for the cabinets and shelves. This will make it feel a lot fresher. Then if you are on a tight budget, stick with some fresh coloured towels of your choice - turquoise, hot pink, kelly green... as your sole colour of the space.

If budget allows, a slick new white floor in a 12" x 24" tile, perhaps laid on a diagonal, will make it feel less country. Be sure it is not too glossy so you don't slip. Eventually you can consider a remodel if you need, but for now stick with the little things to get you going in the right direction - including new modern knobs and towel bars, new modern light fixtures, and even perhaps a sleeker mirror, although I like the round ones and they can be painted in black or even a hit of colour and will feel more modern. And of course, rip down the little valance. Put some vinyl 'frosting' on the window and you won't even need the blinds.

And as I always suggest to clients - take your time with this. What may seem like your first priority before moving in often becomes one of your last once you learn the nuances of the new house.

Congratulations and best of luck! I know you hate this bathroom, but trust me, there is much worse!!

I love the idea of starting with painting the vanity, changing the light fixtures, and replacing the knobs and towel bars!! Then getting our exact idea to remodel.

Yes, paint the existing vanities and the center storage piece. Paint the walls any calming color that you love. Update the mirrors and choose new lighting. Congrats on your home!

sooooo cool!! I love it, and I want it!! ;)

I wouldn't do ceramic tile floors anywhere in my house!! You drop something and it shatters and they are very cold. Just do a nice vinyl...they have beautiful vinyl flooring these days and look fabulous!!

Actually we have a shower in our bathroom with no doors. That way you never have to try and keep that stupid glass clean!

A tile floor doesn't need to be cold.
http://www.amazon.com/HeatTech-Electric-Radiant-Floor-Heating/dp/B0062RU7NK

Is the lay out of the bath room OK with you or are you wanting to move something? (Besides removing the tub)

I am up for anything! We should maybe keep a tub in the master, for re-sale, even though we never use ours now...

Paint the cabinets white, change the lighting and the mirror and change the tiles as well. These are the components that make it look too country. I like Lkristine's idea!

Chuck the fake, paint all white, keep it clean - save your money. It's just a room to....

A wet room can be draughty!

The wet room is a great idea, but from what I can tell you have no room in the space to do it.

I keep saying it here in dicsussions, but it bears repeating: find a local professional with whom you can work directly, who can some see your space, see your home, talk to you about how you live. THAT person will then be best placed to advise what makes the most sense for you.

Getting lots of ideas suggested here by any of us that have not even seen the space can lead you very far astray such that by the time you do get to a professional, they will have a whole lot of unraveling to do to get you to something you can actually do in your space, and that will more than likely only frustrate you as you have to give up on one idea after another you thought you could do . By all means collect images that strike your fancy, that move you. Those will help your designer. But keep in mind what you see here are mostly high-end builds that are very hard to duplicate on a tight budget.

try to get rid of the wall between the toilet and the shower and go with all glass walls at the shower to get the light all the way into the room- open shelves below the vanity leaves towels to easily be gotten by kids- glass tile is a great detail around the shower