Thanks for your votes, everyone. I hadn't considered drywalling over it, but that could be done. I feel like it might be tough to do it properly so it lines ups with the adjacent drywall. I'll have to take some measurements. We don't want to eliminate the niche entirely. Storage is always tough in a condo, so we would like to use it. We actually found a tall, narrow bathroom storage unit from CB2 that will fit. Just for reference, here is some of the other brick that is in the house. You'll notice the bathroom brick is not in the same shape.

Oops, missed this. Just responded in your "too much green???" post.

I put one in our first floor powder room when we remodeled. DH did the work so I got a deal :-). I love the ease of cleaning - getting too old to get down on my hand and knees and wipe all the nooks and crannies. Planning to add one to the master bath too if that project ever gets off the ground. Only thing I don't like is our Toto wall hung - Maris. The water spot is too small and hard to hit. You know what I mean. I would order the Toto Aquia the next time and hope it doesn't have the same issue. We used the Geberit carrier.

They had gallery walls in the 18th century so they were never exactly out. It all depends on the space and whether you like gallery walls. I happen to like lots of art around me and therefore have more than one gallery wall. This style of art is not "in" but it's what I love, and that's what you should be concentrating on. There's no reason why your home should look like anyone else's, and quite a few reasons why it shouldn't. You only have to please yourself in your own home.