You could treat each wall individually. Somehow I think that using an over mirror or pendant fixture would be better than side sconces which would be too much as you'd need 4 to keep it symmetrical. But somehow that corner seems to be calling for something....maybe 1/4 round glass shelves...or maybe a built-in corner cabinet...

Thank you all for your comments. The bathroom is a lot of whitish (large hex tile floor/large format tile shower alcove, and a white (long double sink) quartz vanity counter/also top of pony wall). The vanity is oak. All the fixtures/vanity lights are brass (aged). There is a window at the far end. I thought just off white walls might be too much white, although I guess I could change that with wall "add ons". We live in a country setting, the house is a shrine to mother nature : ), so that is where the green comes from.

I cover those and have done some very awkard spots and on the ceiling! But since you are tearing all out and painting and spackling I'd do another something like this - but also bring it up higher (when the light is removed you will see the fixture and how you can cut into the wall and go up higher if needed) https://www.wayfair.com/lighting/pdp/orren-ellis-shequita-6-light-black-flush-mounted-sconce-w007684027.html This is only 3' in one direction so the photos are misleading, but a flush mount LED ceiling light may work there. Or this - https://www.wayfair.com/lighting/pdp/orren-ellis-shoji-1-light-dimmable-led-vanity-light-w007437834.html

Frustratingly, you can easily pay that much to move too in our area of Northern CA; not sure where in the region OP is located, but guessing it may be similar. We costed both and ended up concluding we could do neither, so just added a second bathroom within the existing footprint and called it a day. Not ideal, but we discussed moving to areas farther out that were within our price range, and our kids felt strongly that they would prefer to continue sharing a room in our tiny house if it meant we could stay in our community. We will probably reassess when the older one gets to high school. The second bathroom definitely helps, though! OP, do you have kid/s now and are planning on adding more, or do you not yet have children at all? If the latter, I wouldn't hesitate to renovate now--you'll have plenty of time to enjoy it. But if you already have a child or two and are planning more in the near future, you will probably feel the limitations of the space sooner rather than later, so might want to make different decisions around investments. We have two kids and I think any more than that would be pushing it in a 2/1; most families we know with three or more kids ultimately moved.