The letting agent described our bathroom as "luxury". It's got a bath and power (not electric) shower, towel warming radiator, toilet, sink, medicine cabinet. It's small (longish, but that's mostly because it's so narrow). I am not sure where the luxury comes in. There's a lot of mirrors in there, there's wood accents (really just outdoor decking boxes covering the pipes), it has an exhaust fan, and there's no carpet on the floor (if a bathroom or kitchen has carpet, it's a deal breaker for me), but I think because it's not absolutely tiny that makes it "luxury". I've actually contemplated it way too much over the (almost) year we've been here.
You get used to it though. You get used to the lack of storage space. In the end, it's not bad at all. If you're going to make it here, part of you has to change, and for me anyway, part of that is the amount of crap I feel I need to make it in life. Not that I was on the consumer heavy end of the spectrum in the US or even anywhere near it.
That said, I would never live in a house with more than 3 people with less than 1 1/2 baths. 3 or less, it would depend on the people.