Here are a couple moore ideas. I like that the brightly colored collection adds to the decor in the first one. The second one is great if you have room to hang them in on the rod. Simple shower curtain rings would do the trick.

I would embrace the element, but I would get rid of the wood chips. I'm thinking back fist sized river rocks. Then I would get a tallish flowering tropical such as hibiscus and add a few ivy plants to grow between the rocks. Additionally, a small water feature might be nice. For me, the bigger problem with the entryway is the door. You have an obviously contemporary home, yet you have a -very- traditional door. I would want a wood door with some sort of art glass element in it. The wood would of course need to be stained to match the existing woodwork. The door will be some big bucks, but it would remain regardless of flooring changes. These two doors are not specific recommendations, but examples of the type of entry door I have in mind. Best wishes!

Kind of funny really how many people would feel exposed and would not want to use the bathroom. The more I think about it, it's a bit like a public restroom with stalls (as stall walls rarely go to the ceiling or floor and have the added issues of gaps between the wall panels and doors -- which thankfully we won't have!). Regarding the humidity control issue, I should have clarified this is only for a toilet and small hand basin (not a full bathroom with shower). The main room on the other side of the proposed toilet is our dog whelping room where we will have young litters of puppies (when we have them). Further down the hall, removed from this room, is our training room where there are likely to be other visitors but the proposed bathroom would be quite removed from that area. It would be wonderful to find more windows like the ones that are up near the ceiling! That would certainly solve the issue. I'll have to scour the demolition/restoration places.

Thank you everyone for your ideas. We are about to paint the walls an off white - double merino, and thought we might paint the doors and pelmets the same and now after reading your comments I think we will leave the timber beams and paint the ceiling between them the same as the walls, and will consider the bar supports too. What do people think about painting ceilings, doors and walls the same colour?