That Schumacher grasscloth looks like it works beautifully. I would also paint the white molding and trim a darker coordinating color. The room could look dark and moody!

Do you still absolutely love the granite top? : ) and the tile riser?

I only ask, because if you wanted ANY paper, any colors pattern or plain?

All it would take is a change of vanity top, and even a couple coats of paint on the vanity. Your mirror could be taller, the light also easily moved up or even changed entirely.

Once you paper ? Yes. Boxed in. $$$ I adore grass cloth but it comes in some pretty amazing colors.......: ) as well as the lovely neutrals we know so well.

IMO change the counter it is small and a remnant will take that and solve the issue and remove the backsplash. Then the skys the limit to what you can do. I do not love grasscloth and with a new plain counter the wallpaper could really be fabulous I think PRs are where you can go a bit crazy

Agree the countertop is making the wallpaper choice challenging. Go see about remnants at your stone place. It won’t be a lot of work or a lot of money.

The tile and the trim around it is the issue for me. Too heavy. Try angling the tile at the edges (cut it on an angle).

I think grasscloth is problematic around water.

Anything from Fornasetti interest you? I like Chiavi Segrete

https://www.fornasetti.com/us/en/

@mytwocents - beautiful choice! Going towards the red is a bold idea.

so not everybody feels at home with Fornasetti but I think with that paper the OP wouldn't have to change anything else in the room

Select a wallpaper that picks up the terra cotta color in the granite

Select a larger mirror and new lighting. A fixture that doesn't create any glare

You might want to upgrade the faucet to brass.