I also have an overwhelming need to see something curvy, flirtatious and round in the space. Consider this when scouting for decor and accesory items (i.e. round rug, curvy fluid light fixtures). Also, would it be a complete abomination to sand down the furniture (so it looks older) or painting it a new color before upholstering to modernize it? I agree with j222b's suggestion in that the furniture and space could benefit from some eclectic coverings but perhaps a neutral fabric against a new color that could bring out the carving of the wood could work too? In my head I see a rusty orange or deep aubergine purple or rich dark green. Just a thought...

I really like pale grayish sage with white. Also a cool greenish aqua for a soothing look to the bath. White or gray Corian counter. If it's a low-use bath such as a powder room, white marble would be lovely for the counter. Rug or mat on the floor with a nice pattern to hide spills, dog hair, etc. If you have a window, lovely drapes, custom shade or match-stick blinds would help warm the space. Finally, if you have a bathtub, a custom shower curtain will really dress up the space and add character/warmth. Look at drapes as well as shower curtains on Houzz to get inspiration. https://www.houzz.com/photos/custom-shower-curtain-phbr0lbl-bl~l_43312 Consider the space across from the toilet & hang a piece of art there if possible.

You mean general lighting? Ambient light is whatever lighting happens to be spilling into the space. Could even be from outdoors or another room. Lighting is generally divided into general, task and accent lighting. General usually being overhead and providing a base level of illumination. Task being things like lamps, vanity lights or pendants-anything helping u see better. And accent being anything used to accent or emphasize something. Sometimes the categories run together like under cabinet lights which are both task and accent. So in order to figure out what the right fixture or lamp is you have to determine is it for general, accent or task purposes. Fluorescent tubes make great general light in an office or workspace but poor task or accent light in a family room. Similarly lots of recessed lights work well in kitchens but are usually too much in bedrooms where you typically don't need much general lighting. A good vanity fixture might fulfill all three in a powder room but in a master bathroom you might need some recessed cans to provide task lighting over the shower or tub. A lamp might be enough in a bedroom but not enough for a heavy task area like a laundry room. You get the idea. It's less about the fixture and more about how it's being used.

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