Once you remove the tiles, there will be lots of drywall repair. I’d probably get it fixed up and then just paint it.

What is your budget? personally i love it and would try to save it. i would look for a corner sink and mirror (check ebay) if you can save the wall tile. otherwise that sink or mirror should face the same way (i bet the sink and toilet were pink/peach originally, along with the floor). and then i would do a fun wall paper with pink black and green (florals/ foliage?) and then a nice window shade to tie it all in. it also looks like you need more storage so a cabinet or shelf above the toilet in rattan or black. good luck!

Removing the tiles will downgrade the space.

i like those ideas stephaine, the full size bathroom is the same theme and the sink / tub is all pink lol, dont have a unlimited budget just trying bring the space up to date its going be a rental apartment for me