Thank you all for replying, lots of great ideas!
I love the idea of a corner bath - would it be suitable for a shower over it? Totally agree about the shower screen, definitely too dangerous with two DC's to bathe
The door does indeed open right onto the toilet, it's a bit of a squeeze to get in and close the door behind you so a corner loo might work (I would never have thought of this!)
The tall heated towel rail instead of the radiator is a great idea, I can see this bathroom could turn out just fine!
Thinking about the cosmetics, I've been looking at the Dulux light & space paint, I wonder how much bigger it would seem with those tiles removed, re-plastered and painted in some kind of neutral colour, I find white a bit harsh and clinical - maybe a warm peachy kind of colour? What kind of tiles for around the bath? A few mirrors definately, will have a think where to put them, I was also thinking of horizontal blinds rather than those vertical ones?
I think I'm going to get a few ideas together, pictures etc and do some scrapbooking while we wait for the sale to go through :)