To dress up the space and create unity between the dining room and living room, you can add instant character with classic-looking wainscoting panels. Description from newenglandclassic.com. I searched for this on bing.com/images
Definitely, need to do some very sturdy wall mounts. Like the idea a a shelf w/hooks instead of the regular towel bar! I would do different door knobs instead! And probably need to stain the wood with something water resistant to be in the bathroom.