If you can use a CFL, go ahead, but I never plan my lighting around it. Remember there are very few dimmable CFL's out there.

Recessed lights are a poor choice for general illumination of a room, because they are all direct light and no indirect light (indirect is the part reflected off the walls and especially the ceiling). You will get better room illumination with a conventional surface mount or pendant light.

Perhaps others have, but I have never felt the need for dimming a bathroom light.

I like this style. If you're "reading on the toilet" you'll want at least a 2 bulb fixture above you.