Get rid of all old decor and take down all old wallpaper, border or paneling. Paint the walls a different color and paint the ceiling a different but light color.
One idea is to remove wallpaper and replace it with striking tile inlays, in dramatic colors or patterns. There are a number of commercially available options.
I would tile every wall in the bathroom using the new tile panels. I would do these panels in a bright orange to brighten up the room. Then pick a white grout.
To add drama to a remodeled bathroom try using a textured paint. You can also add subway tiles or wainscot to the bottom half the wall for a dramatic change.