I just noticed something about your toilet. It has an in-swinging door. That might not meet code. If it does, it is still a dangerous situation. If someone passed out in there, they would block the door from opening, and help could not get in. In the hospital I work at the doors have a latch and hinge set so that the doors can open either in or out for safety. A pocket door would work if the toilet was pivoted 90 degrees, so that the bowl or tank of the toilet faced the shower, the shower moved down a bit, and the linen closet at the end of the shower moved to the toilet room wall, to make up the extra width that the shower will take up. The toilet will need to have 36" min interior width for best function, and that would leave about 24" in depth, a perfect depth for a wall closet, to balance the wall with the shower depth. Next the door could be pocket and slide behind the closet area.

My parents house is like that, but there’s a wall with a wide doorway into the area with the vanity, so it’s open but also easy to close off by just putting a curtain rail up. It’s also oriented to the room such that if you only use enough light at the vanity to wash your hands for a midnight potty run, it really isn’t enough to bother someone in the bed if you place the bed sensibly. Getting ready in the morning would be trickier if you needed to do makeup and so on so needed proper lighting, so that’s where a screen or a curtain would come in.

I'll be a contrarian. I would never knowingly rent a room with a shared bathroom in the hall. That would be a complete pass - I don't even like having to use a hallway bathroom in a sleeping situation in which I would share with friends and family because if I need to use it in the night I would have to wake up more/get more decently dressed and I hate having to shlep stuff to take a shower or perform normal grooming stuff in a bathroom. I don't have the horror of viewing a toilet from a bedroom that some houzzers seem to have. It certainly wouldn't bother me on a temporary basis. I have a master bath in my home and I can't remember the last time I actually shut the door. I don't have issues with smells or humidity but perhaps that is because my Toto washlet has a built in deodorizer AND I have an excellent Panasonic fan which runs based on ambient humidity levels. I don't generally even have condensation on shower doors or mirrors after exiting let along huge amounts of humidity wafting through my bedroom. The question really is one of economics. There is a cost to installing the bathroom and OP would need to decide whether they would make up the expense by having increased rent and/or renting it out more frequently. Certainly any prospective renter would see a picture and determine whether they wanted the ensuite with a curtain in the room or use of a bathroom in the hall. Also resale value is a red herring. At such point that OP wanted to sell it would be relatively inexpensive to convert the bathroom into a closet if having the ensuite in that room was a negative.

I honestly don't understand the gas chamber mantra that gets tossed around here. We are physiologically designed to be more sensitive to and more disgusted by the waste of other people than our own. So anytime a person is forced to occupy a space that recently contained someone else's waste it is unpleasant for them. The best way to make it more pleasant is to limit the time any person might have to spend in a room where someone else's waste has recently been. The easiest ways to do that is to limit the purposes of the room used for waste or schedule waste activities so there is no overlap. Increasing the space to dilute the odors doesn't really work that well. If you don't believe me, take a walk near a cow pasture.