Well, structural needs and repairs have to get done, as you already know, or the decorating will eventually get destroyed by the entropy that always wins in the end. So, you really don't have a choice. Have you looked into potential tax breaks for any of the repairs that are needed? For instance--and I don't know if it is still in effect--one of the original wooden framed egress doors from our garage sustained a lot of sun and water damage, dry rot set in after one year, etc. We had it replaced with a metal framed door that is not as architecturally authentic (much to my chagrin), but does meet some energy savings requirements that gave us a bit of a tax break, and, importantly, is guaranteed for the life of the house, even if ownership is transferred. Long-winded way of saying that sometimes the costs of repairs and necessary replacements can have a few mitigating factors every now and then, even if repairs aren't as much fun as decor.

Post a layout. But it does not sound as though you have the room to do a barrier free bathroom without annexing space from another room and altering the structure of the home.

+1 on recessed medicine cabinet / mirror combo above the sink. Recessed will give you a more minimal look, not take up extra space, I think the frameless one like in my below pics would fit in with any style. And still gives you adequate storage. You could remove the wainscoting but it will likely be a lot of work to smooth out the walls for paint, especially if it's glued down as there will be leftover adhesive stuck to the walls. I removed some in a small bath once and had to skim coat the entire lower half of the walls. Plus... the wainscoting seems to match the style of what else you have going on, like the pedestal sink and the shower tile. If you were going for a more modern look I'd say get rid of it but as-is it looks just fine. Just caulk any gaps, sand any imperfections if needed, and give it a nice fresh coat of white paint. I'd paint the walls a light color. Doesn't have to be white, or even a neutral, but just not too dark. I think small spaces should feel light and airy. Maybe a light blue or light gray. Might consider changing your light fixture and receptacle covers to white instead of black/oil-rubbed bronze. Generally all the fixtures in a room should be the same finish for visual consistency. Regarding storage, in addition to replacing the pedestal sink with a slim vanity, you could do floating shelves or recessed shelves next to the mirror. Another idea aside from centering the light fixture that is above the mirror is to move it to the side of the mirror (better face lighting) and install some overhead recessed lights in the ceiling for fill. Another mirror option would be to have a LARGE mirror that goes from wall to tub, filling the whole width above the sink and toilet, with a simple wood frame. This would help the room feel larger, but you would sacrifice any storage options on that wall which I'm guessing is a no-go. Whatever you do for the mirror, I would not do two mirrors, and 16" seems pretty small. Personally I don't think you have room for a round mirror that would be large enough. Some of these ideas I'm borrowing from my own small bath remodel... it's more of a modern take, but it's only 5'x7' and might give you some ideas of how you can utilize the space and/or storage in a small space to work with. Some of these pics are WIP before everything was installed. I recently added this second floating cabinet to the right of the toilet and there will be a shelf between the two for an extra place to set things.

I always like the advice to make less of a project and move on. Maybe the agents like to tell people to fix things up because it's good for conversation? Or because they know it will sell faster, and justify it by saying they only recommend "cost effective" changes? How does one define cost effective when few if any improvements return dollar-for-dollar? FYI: The tiles I have are not metallic -- they are white and the relief is not as sharp as it appears in the black tiles but it isn't smooth like the old tiles so good point -- it could be a soap catcher! Maybe I will just leave it as it is, which pleases me well enough. We did redo this bath when we first moved in, removing floral wallpaper, replacing the vanity, etc. My idea at that time was to cover that big shower wall with a flowing granite that I fell in love with, but didn't have the budget for it LOL! These houses are not selling for $2M so it's hard to justify that at any point -- rather the prices are currently slightly less than $1M. The master layout includes two sinks, but the architect didn't go for those His & Hers side by side vanities, thank goodness. The second vanity sink is in the dressing room leading into this bath. It's really more practical that way -- who wants to do makeup in a room steamed up by DH's shower?