Well it certainly is in need of an overhaul! I think the idea of painting the sink base is a good one; it is so dark and looks out of place with the toilet. Try chalk paint, maybe in a cream color or even something bright! After you remove the wallpaper you could install a chair rail so you can paint this room in two colors. White wainscoting would be nice but more work and pricier. Your floors are very nice; softer colors , upgraded lighting more modern artwork. Some pics for inspiration.
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ceiling
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