Knotty Pine in Bathroom: Almost gone!

If I had known the faux-subway-tile stamped walls were in this good of shape I might have considered trying to restore them or at the very least taken off the odd paneling a year ago and enjoyed them for a while. They do have just enough cracking to be a pain to fix. My plan is to cover them with bead board so they will still be there if someone in the future wants to take on the task.

The paneling was over 1/2" thick so my bathroom will be a couple inches bigger with all of this gone. 

The opposite side of the weird, badly painted paneling is actually normal width, kind of pretty, knotty pine. Can enough be salvaged to do something with? I'll have to wait and see. 

 I'm guessing this paneling was previous owners answer to bead board?

Oh yeah. Instead of notching the paneling, they notched 1/2" out behind the window sills and bottom board on the medicine cabinet. Because that was easier???

The bathroom is progressing slowly but surely. It's almost comfortable enough in the basement to use the shower so the tub might be removed next weekend to get a start on the floor? I'm crossing my fingers anyways!