That photograph is almost spooky. My sister had a powder room in the 80's with very high end pink fixtures and a 'sponged' wall - the sponging was done in almost exactly the same colours!
I never liked it.
If I were you I would:
- change the faucet to chrome or brass (chrome would be my choice)
-remove the mirror and buy one with a frame to match the faucet or in dark wood - maybe a rectangle or square to offset the curvey fixtures
-get rid of the towel bar and put in a towel ring
-paint those scary walls a creamy yellow
-buy some dark brown towels
-look for some art for the walls - a little poster framed to go with the mirror perhaps, check out the vintage posters at www.barewalls.com
-get a new light fixture, yours is not shown in the picture and maybe great, but if not you can probably replace it for a reasonable price with something nice from Home Depot
You will have fun transforming that little room with paint - show us how it looks!