The floor tiles are beautiful. Clean them with the acid stuff and reseal them. Solid color on wall

I love the floor tiles! Are you planning on retiling the lower half of the wall?

I don't want to re-do the tile walls. Really looking for a way to cover the blue accent tiles and then maybe paint the vanity?

Has anyone every decoupaged paper on tile before?

Don't fight them.....embrace them. Make them a part of your design. Work the cabinet color and the wall color together for the floor and the inset tile. Or choose one to focus on for the color and use the other for the accents in the room....rug and towels.

could you (very carefully) chip out the blue tiles? Painting vanity is easy. Also, think about changing out drawer pulls too. And here's cool way to frame plain mirrors - www.mirrormate.com. You're gonna be fine!

Agree with abbyjean, you will probably be surprised at the difference of just removing wallpaper, and updating cabinet hardware. Nice shutters too!

cbmoran! Here you go - Don't live with those blue tiles one minute longer :)

A wallpaper with palm or banana leaves in the olive color could be great too. With your floor, you have a chance to do something really bold.

I've heard of painting tile too though I have no experience with it. The floor is actually real tile? It's so perfectly even, it looks like linoleum but very, very pretty. Just with the little bit that I see and from my own recent bathroom redo, I think the lighting and the counter top are dated. When you take that wallpaper off, I'd be looking at some different lighting. I had those "Hollywood" lights too and I was worried about not having enough light once removed. I'd recommend putting in a couple of recessed lights, making a frame around your mirror and changing the counter top, if possible. I had the faux marble too! Maybe that's why I am zeroing in on yours! I'm sorry, honey! But it had to go! ; ) I think I'd rather have a pretty laminate counter with drop in sink which could be fairly inexpensive. If budget is too tight, I sure understand that. You just work around it. What style do you want to head towards? Do you want to keep with the farmhouse feel overall? I think a white vanity is nice. As the others said, just changing out the hardware will help. You probably want to wait til the end to do that because that's kind of like the earrings of the outfit, the finishing touch after you decide the overall style you want.
I was told I could not remove my accent tile like what we are talking about here and yet sometimes tile gets broken and is replaced so I just couldn't believe it could not be done. I even saw an attachment for like an electric drill that was like a little saw to go between tiles in the grout. I still don't know for sure but yours actually look fine. I'd at least try to make other changes to see how much that is impacted.
I think if we knew what style you wanted, we could help with another wall paper selection, lighting, paint, accessories etc.
Best of luck. Let us hear from you. I will attach a link for framing your mirror. Is your vanity the typical 70ish low height or is it taller?

here's a way to update your mirror

http://www.momtastic.com/diy/128900-how-to-frame-a-bathroom-mirror/

Another similar way to update a mirror. I used a mirrormate frame on a bathroom mirror and I like it fairly well.
http://www.mirrormate.com/

Yes, I've seen those. It's one of those things where I say to myself, "Now why didn't I think of that?"

cbmoran, how did the bathroom update go?

Oh no! Is this another outdated post?!

Oops auntie, yes it appears to be! How'd you stumble across it last night?

Have another cup of coffee Bee!

Im out of practice, Ann. I usually am careful when directed/suggested to look at a similar dilemmas, you know the ones on the sides. I had answered one really cool one I HOPE wasn't old too and then clicked on this one. Usually I check the date of the last post and obviously I didn't on this one. If I read backward and no comments from OP I start wondering then look at original date. Its disturbing because there are active CURRENT unanswered ones or with only a few comments that can't get off the ground and yet spend a lot of time wasted on an abandoned thread. Its really not fair to anyone and we, I have complained yet the reply back is that the info posted MAY be helpful with the same or similar problem .MAY yet some current poster IS SAYING NOW theyd like HELP NOW. .. not maybe later about part of the problems. I dont know if it makes the numbers for public view be huge but how many are discouraged? I know I do when I realize that I just spent time and sometimes part of my cell service to find items for their rooms. And why do people just drop off like that??? Never, ok thanks for everything. I dont need anymore help right now. I dunno. I do try to catch the old ones but even when I type BOLD LETTERS DO NOT RESPOND TO OLD THREAD people still do. It omly seves to keep them in play like a volleyball. This comment will bump it up towards the top of discussions. Thats why I try to prevent further activity. No body is home here anymore.