I would go with a walnut stain with a wood with small grain and no knots. This would be consider a modern look. Or mid century modern. Which is back in style. Cedar would be best over pine.

You have several choices at different price points. 1- Sheet rock, plaster and paint This is the most expensive option and will add the most permanent value to your home. 2-Wallpaper over a heavy liner paper. 3-Prime then paint the wood, it will give you a stripe effect. Let me know what you decide to do. Linda

Well you posted this several months ago, but I thought I would make suggestions anyway. Hope you don't mind. In order to stay with or keep in mind the style of the shelves I would first change out the towel rack and TP holder to a chrome, or brushed nickel finish. Or get something that goes with the water faucet on the sink. If you are going to paint the wood around the shower base, paint the window trim and pieces of baseboard that are wood as well. I agree with using a gray color that adalisa, above mentioned. Maybe paint your vanity a darker gray, or even a shade of black, like your shelves to tie it in. That's it for me.

I recently saw this episode of Ask This Old House where they demonstrated painting tiles - especially as a solution to get one through till an entire redo is possible. http://www.thisoldhouse.com/toh/tv/ask-toh/video/0,,20902001,00.html Looks like you are doing a great job!