Hmm. I put 12x12" limestone tiles on three sides surrounding a bathtub years ago, and I've never liked it. It was much too cold and stark, it felt like a mausoleum! I guess there might be tile you could use that wouldn't give that affect. See the link I posted above. (I pointed out the wrong picture in it, btw, I meant to point to the third one from left, on top row.) That doesn't give the stark feeling mine did, because the tile doesn't go all the way up. Have you seen pictures of fully tiled walls? I ended up wallpapering the rest of the bathroom to soften the hardness of the tile. A small idea I had is to put a shelf on your long wall, about 6' up. It was easy to make: I made it from a 1x6 or 1x8, it was about 5' long, and had a backboard on it. Under the shelf I attached pegs on the backboard (the part that goes against the wall). You could use the shelf for functional things or decorative things, the pegs or hooks for towels. I put simple wooden brackets every 16" in order to attach it to the wall studs. But you haven't said what style you'd like the room to be. Personally I like the wainscoating idea. One of my bathrooms has one made out of bead board, and goes roughly half the way up the wall. (They say not to put it exactly halfway up, but higher or lower.) I don't think it would look like you went to a fire sale! It would just be a consistent style.

I think that overall, you are on the right track with the layout. For the age of your kids, it makes a ton of sense to have a table at one end for games, puzzles, crafts, projects, and school work. There are a few things I’d recommend changing, as well. Here is an idea I drew up for you: I’d sell/get rid of the tv cabinet and get a console or dresser that fits in the niche. Consider putting the tv on an articulating arm so that it can be adjusted for viewing. You could probably get a smaller tv, if desired, which might help with the tv feeling “too close.” Put the full size sofa under the window on the long wall, with nothing behind it. Since it is shorter, put the loveseat in the walkway so that you can easily walk past it to get from one side of the room to the other. On the wall where the tv cabinet was, you could put in approximately 6’ of bookshelves. This will give you a spot to contain the books and random items that life throws at a busy family. You can store a mixture of pictures, books, and the globe. Baskets can be gathered to hold fabric swatches and legos, puzzles (I like removing these from their boxes and storing them in zippered bags inside a basket, if possible.) I recommend getting a circular end table for the end of the couch nearest the doorway. It will make that walkway/doorway feel more spacious and the furniture like less of a hip banger. At the table end, I like the idea of the storage unit with the fabric bins. I know that for our family, the bins need to be labeled in order for them to be used properly and not become catchalls. You could tie tags on the handles, or hot glue labels on the sides of the bins. Then it’s just a matter of training the household to regularly put things away in them. : ) Your windows are gorgeous, but I can understand why you want to obscure the view. How about some top down shades or sheers instead of what is there now? Then you would have quite a bit more light coming into the space while still retaining a sense of privacy. The windows would be pretty with curtains hung high and outside the window frames. I like your couches, and the rugs and pillows all work very well with each other in addition to the furniture. You might like to check out the YouTube channel by Clutterbug. Her organizing solutions are very realistic and down to earth, doable without breaking the bank. “At Home with Nikki” and “Alejandra” have some great organizing ideas on YouTube, too. These have been helpful for our family when our things started to feel like they were taking over our home. I love Josh Becker’s Minimalist blog posts and the blog “Nourishing Minimalism,” too. I couldn’t really make our house any bigger, so I found I had to simplify our stuff instead....well, still working on it. Hope this helps!

I have a drop in Mariposa tub that is 66x36. I think it’s a great tub. Mine happens to be a whirlpool version but I’m quite sure the specs are the same. I find the tub very comfortable for laying back and soaking. The water depth is good and the arm rests are a nice feature. I would not hesitate to purchase it again if I needed one. I have a separate shower so I can’t speak to using the Mariposa as a tub/shower combo.

We have a similar set up with a hall closet under the stairwell. It's definitely a tricky space. We hung a bar across the top and use baskets on the floor under the hanging section. In the back of the closet where it is hard to access we store off season items. In our case it's Christmas decorations. In your case, off season clothes would work well. We have hooks on the side walls for hats and other light items. Too bad you have a louvered door because we use the back of the door for storage.