love it! paint the paneling. enjoy!

do you more photos so we can see it all? windows, placement, etc make a real difference. my upstairs half bath is partially paneled and can be a challenge. I can't tell from the photo, but I'd it a veneer fakey paneling or real knotty pine? it makes a difference if you paint.

I want to see the red toilet!

That paneling is not original to the room. Looks like it was installed sometime in the 1970s to replace plastic tile -- a common repair for plastic tile which was one of the worst inventions of all time. If you have the budget, you should get rid of the paneling and replace it with a retro (ceramic) wall tile

For design ideas, take a look at Retro Renovation, Pam Kueber's great website for owners of 1950's retro houses. If it's post-war retro, Pam has already written about it.

I agree about replacing the 70's paneling. The rest is fabulous.