Here is the after:
Goodbye dark grout lines! Goodbye white shower curtain! Hello little baskets! Hello ceiling light! Hello cabana stripe hand towels and navy carpet!
I had planned on putting up a faux roman blind. It was really cute but it blocked too much light. So the blind came down.
Other stuff: We hung a metal hanging fruit basket over the shower curtain rod to hold all of my son's toys. The basket was from goodwill. The light fixture, new wicker garbage pail, toilet paper basket and step stool were also thrifted. The shower curtain I picked up from ebay. The hand towels were on sale at Bed Bath and Beyond. The bath mat was from The Bay (on sale).
Update: Since 2011 we got rid of dark bath carpet (gets too wet with the kids) and only use the small bath mat towel thingies. We went back to a white shower curtain because pattern makes my head explode. The shower doesn't work, the toilet requires plunging and animated language to function fully. The grout renew on the grout lines has held up perfectly!