Question 1. How important is the bath. Do we keep it and turn current bath into bath/shower combo?

Are you asking whether the tub is important? That's a personal question. My husband and I use our tub every single day; we would never skip a bathtub -- but if you could ask everyone on this site, I think you'd find that people are split about 50-50 on that question. So, the question is, do YOU use your current tub?

Note: I like your window-shelf. I'd keep that -- I even think the tan tile could look good, if the blue wall was replaced with a cream color. It'd be a great place for some greenery -- a small plant would be a nice accent /would bring in a pleasant element.
Question 3. Do we punch existing shower space and lose a couple feet of an alcove into our bedroom?

How big is your bedroom? Can you afford to give up the 2'? Speaking
only for myself, if I had to choose, I'd choose a moderate-sized bedroom
and a more spacious bathroom.

Question 4. Do we remove pocket door and wall between vanity sink and main bath sink?

Yes.

The footprint is tricky.

Can you show us the floorplan? With dimensions? And since you're considering cutting into the bedroom, include

Thanks! I rarely use our bathtub but maybe that’s because we have a hot tub. I’m just wondering how much it might affect resale if a master bath has no tub. Because we certainly could put a larger shower in that area.

I am not sure I understand the layout. Are there two bathroom in the first pictures? Is the bedroom behind the blue wall that has two light switches? How big is the current shower?

A floor plan with measurements would be very helpful.