Or we could be a bit more adventurous (read: expensive. this would have to wait a bit, but would be more cost effective than fully retiling the space) and put in beadboard on the walls and ceiling, like this bathroom I also saw on Design*Sponge (that is almost exactly identical to ours, weird!!) and keep the wall color a bit darker, khaki maybe? Or cream?
The Poll Starts Now:
1) paint all white!
2) paint all cream/ivory
3) paint white with subtle cream/ivory dot pattern
4) white beadboard with khaki walls