How to make over the smallest bathroom ever

DH and I going to do something to the downstairs bathroom. Don't ask me what we're going to do, but we've got to do something!! The paint is peeling/flaking off like crazy from all the moisture, we've got no storage save a medicine cabinet, and it's a little small. OK, it's really small. It's about 4 feet wide and about 7 feet deep. And this is our large, full bath! In the one upstairs, you can't even close the door unless you do it AS you're sitting down onto the toilet. But I digress. Back to the "big" bathroom.

The reason I'm posting is that what we're planning to do is definitely not perfect, but we just need something to get us by until we're really ready to make some changes in terms of possibly an addition. Here's the existing situation:

• entire bathroom--including shower--is paint (no tile, no water repellent surface of any kind)
• as I mentioned, there is no storage other than the medicine cabinet
• right now we've managed to squeeze a tiny bookshelf in to hold towels, etc., and there's one of those over-the-toilet etageres (we don't particularly like it) holding other essentials
• we have nice original fixtures in here--a small but wonderful cast iron tub with shower (the only one in the house), a pedestal sink that's--again--tiny but really nice in its own way, and spigots and such that are simple but filled with character. This stuff all stays no matter what.

being as how it's an old bathroom it's not vented. There is a small window that we try to crack in order to let some of the moisture out. We understand that this is what's killing the paint, but we may or may not be able to properly vent due to the configuration and location of the room. This is an unknown.

The tricky part is that we can't afford to add on right now or bump out, so we're forced to figure out something within the confines of the size and configuration we've got right now. One thing we'll do is scrape and paint. Since it's just temporary (hopefully) I think we're going to go ahead and just put paint in the shower again. If we go with paint we can at least choose a color where it doesn't show as much and/or repaint as necessary.

Here's a picture from when we first toured the house. It is not nearly as roomy as this picture makes it look (she types, dripping with sarcasm) now that we've got the bookshelf and etagere in there. What a project this will be!

Oh, and just for fun, here's a picture of the small bath. I crack up just typing that. It goes way beyond small, but I'm not sure there's a word in existence to describe it.