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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.

Painting over wood paneling is an option that can save you money and time. However, if you go this route, the style and texture of the wood you paint over will still be evident. Painting over paneling is an excellent way to modernize an otherwise outdated aesthetic. Instead of removing wood panels, consider painting them a bright color–like white or ivory. This is essentially wainscoting, but without any of the required installation. 

Peel-and-stick wallpaper is designed to be removed without damaging walls, making it a good choice for renters or temporary design changes. However, damage to paint or drywall can occur under certain conditions. To prevent issues, the wall surface must be properly prepared before application—it should be clean, smooth, dry, and correctly primed or painted. Applying wallpaper to a freshly painted surface can cause the paint to peel off during removal. Additionally, removing the wallpaper too quickly or aggressively can also cause damage. For best results, always follow the manufacturer's instructions for both application and removal.

Using a fabric softener solution is a popular and low-cost DIY method for removing wallpaper, but its effectiveness is limited. While it may work on some types of wallpaper, it is unlikely to be successful on vintage styles, and there is no evidence that it is more effective than other removal methods. There are also several potential downsides: the solution can leave behind a residue that may damage your walls or interfere with the adhesion of new wallpaper. Additionally, this method can create a strong, overpowering aroma that takes a long time to dissipate, making it a poor choice for homeowners sensitive to smells.