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Yes, many types of peel-and-stick wallpaper can be used in bathrooms, especially those made of vinyl or polyester. However, its success depends heavily on the level of moisture and ventilation. In bathrooms with good ventilation, such as those with fans, it can be a durable option. Peel-and-stick wallpaper may not adhere as well as traditional wallpaper in very humid conditions. For bathrooms that see a lot of moisture, like a kids' bathroom or a full bath with a steamy shower and poor ventilation, even high-quality peel-and-stick wallpaper is likely to peel over time.

You may end up with extra wallpaper once your project is finished. Hang on to that wallpaper, as you may need to use it to patch up areas that get damaged later on. If you have a lot of excess wallpaper, try getting creative with it. You can use it to line the inside of a cabinet or drawers, for example.

Your peel-and-stick wallpaper can fall off for multiple reasons, including high humidity levels, extreme temperature changes, poor installation, and even the wall surface. Textured walls can prevent the adhesive from fully sticking to the wall, making it more likely for the wallpaper to peel off. Low-quality wallpapers with weaker adhesives are also more likely to fall off prematurely.

When choosing materials for finishing basement walls, consider factors such as moisture resistance, durability, and fire resistance. Opt for materials specifically designed for basement environments, like moisture-resistant drywall or cement board. Insulation with vapor barriers can help regulate temperature and prevent condensation. Consider using mold-resistant paints or coatings. 

Research and consult with experts to select materials that are suitable for your specific basement conditions and intended use. Prioritize quality and compatibility to achieve long-lasting and aesthetically pleasing results.