LED Folio has some interesting LED applications - LED molding. It comes in standard 2', 4' and 6' lengths. Custom lengths will cost more. 4' ~ $500+

From the pictures I've seen, the lighting is diffuse.
From a practical standpoint, the cost may be prohibitive. I calculated the cost myself and found it to be outside my budget.

Sconce lighting seems to be in great demand for bathroom vanity lighting.

I would recommend checking out lighting at your local lighting stores first.

Thanks - their 12x12 LED wall tiles look tempting as well. (The top foot or two of my walls will be white as will the ceiling, so a top row of LED tiles would be an interesting option - albeit I'd probably prefer the LED for moldings that you mentioned. (Price, we'll see - I sent an inquiry.)

I browsed around and saw some other LED strips, including some that are waterproofed but I think to a degree these would be providing a Christmas-light effect, unless they were entirely hidden. It looked like the nice thing about the LED folio lights is you get a nice, diffuse continuous panel.