From where I am, the tiles look really good. Why replace them?

If I must choose, I would do wainscoting.

Do you mean for the upper portion of the wall? I love a wallpaper but that’s me. Is your style more cottage /farmlike?

I have thought about leaving them. The wall to the left, where the sink base goes next to the toilet is not pretty. The previous home owners tiled around and many tiles just crumbled and fell. Then that becomes my dilemma lol. I have that about patching up those areas and just doing a quick fix like peel and stick wall paper on that wall. My design eye is not great for using a different texture up against those tiles.

This is the wainscoting idea I found on you tube. Looking to modernize the bathroom.

I would remove the metal bars. Which may lead to more patching. Have a hook on the back of the door. As far as the walls I’d just do a molding and a wallpaper above it. Or a shiplap look. It’s a small space. Doesn’t need a lot.