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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.

The pros of wallpaper include its durability and longer lifespan than paint, as well as its versatility. The durability can translate to lower long-term costs for upkeep and replacement, and the versatility means you have more options for customizing rooms in your home. Some downsides include that it’s difficult to remove, it’s not ideal for rooms or areas exposed to high moisture content or sun exposure, and it’s tricky to install. A professional wallpaper hanger can help mitigate these issues, though, by installing it properly and in areas suitable for wallpaper.

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.

While many types of peel-and-stick wallpaper can be used in bathrooms, they may not adhere as well in humid environments as traditional wallpaper. For best results, choose a vinyl or polyester-based wallpaper, as these materials are more durable and water-resistant. Good ventilation is also crucial to reduce humidity from steamy showers. In bathrooms with high moisture and inadequate ventilation, even high-quality peel-and-stick wallpaper is likely to peel over time.