I would keep the tiny square tiles if you can. Maybe a pedestal sink, add a recessed medicine cabinet for storage and

Rip out wall paper, blinds, get some simple cellular shades and paint a light blue

You need a vanity for storage. Add shelves over the toilet for extra toilet paper, cotton balls, and q-tips.

Consider removing the wall tile and wallpaper and replace with board and batten style wall trim with wallpaper above.

Considering moving the light fixtures up higher. Seems like someone could get shocked easily.

This room has been remuddled several times over the ages. If it is in good working order--KEEP THE TOILET and rip out the vanity, counter, and tiles.

The two things that you should keep if they are in good condition are the toilet and floor. Personally I’d love to see wallpaper, new vanity, new lighting and window treatment. The choices in different price points are endless.

Will always advise that if there is any room in a home to go a bit crazy with design it's the powder room.

Kohler reintroduced Fresh Green, which they had in their line-up from 1971-79, as a brighter version of their Avocado which was kind of a brownish drab green.

If that is a Kohler toilet, which it looks like to me because of the detailing on the tank, I would probably keep it. This looks like Kohler Fresh Green. They can be made to keep working by putting new valves and such in the tank. (We had a white version in the house from 1969 that was there 45 years later when we sold it).

For some reason Kohler makes mostly kitchen and bar sinks in the Fresh Green color, there are limited vanity sinks in cast iron. But you may want to look at one of those.

I would concentrate on new lighting or repositioned lighting, a new vanity top and or vanity, new window treatments that did not look pink, and a larger mirror. The rest I would actually try to preserve. For one converting from a wall hung back outlet toilet to a conventional floor outlet toilet will cost $$$$.

I think this is actually a typical example of 1960s-1970s regency and I don't think it's been remuddled at all. (Except I don't get the pinkish tan window shade). Cultured marble one-piece seamless tops were a newish thing, and to some extent a lot of these bathrooms kind of ignored mismatches between tile and fixtures and countertops because of what was available at the time.

I think a countertop color that worked with the 1-1/2" tile would go a long way. And a better, non-foil wallcovering. Something that introduced more colors.

This paper from Thibaut has a matching fabric in case you wanted to do something for the window.

If you avoid spending a lot on replumbing and retiling and such, you can spend more on the details.

It's controversial, but a 1960-70s bathroom would be perfect for a full wall mirror over the sink with the light fixtures mounted through the mirror. We had full wall mirrors in the bathrooms and they were great.

Circa 1969 except wallpaper mid 1980s

I know it's a link, but here is a YouTube video of someone that covered their tile with pole wrap and wallpaper above it. It looks great for an easy fix. https://www.youtube.com/shorts/Q_9YroUxCgQ

Sorry but really that toliet drives everything else and I do not care how much it costs it would be gone in a heartbeat. I have no idea about your style but for me that space is a gut job and do it right now. Budget can be anything but if you are willing to do some work you could have a great PR which BTW I find are fun to do since they can be really over the top crazy . If you love the toilet then that drives every other choice and can be fun.

The only things that go together are the toilet and the wallpaper. Given that the rest is a hodgepodge, from floor to walls, toilet to vanity, I’d get rid of everything and start over, or figure out ONE thing to keep and redo every thing else around that.

Yes, sell the toilet and use the money to help fund this bathroom.