Pick up these crates at Michaels for about $4. Stain or paint. Add a pair of shelve racks from Home Depot and ....."Wala"...you have an attractive storage unit for towels or anything else that requires easy access. (note: Reinforce the crate by securing with screws through the wood into the wall.)
hidden box from old books
Pretty much the best website ever: knockoff DIYs of retail decor. (anthropologie, ballard design, crate & barrel, land of nod, pier 1, pottery barn, restoration hardware, urban outfitters, west elm, williams-sonoma and others). Truly some of the neatest ideas ever!!
I love to do this same thing in the bathroom...I have my normal shower curtain, but then added another rod up high and hung two pulled back curtains on either side to frame the tub. (makes the bathroom seem SO much larger that way!!)
Wire basket and mason jars become outdoor chandelier
wrap plastic cups in fabric and hang from string lights (these are SO cute, it's like making your own little lamp shades)
Garden party - sunflowers