The answer is yes, but with many caveats. The big color trend we are seeing in wallpaper is grays. Gone are the days of the “big yellow flowers with bird” print in your grandmother's bathroom, even though Pottery Barn is losing a lot of their market by trying to revitalize some of these patterns. What we are seeing is wallpaper that looks like faux finish paint, such as the sample above.
In addition, damask prints are back, but they are far from the English countryside patterns you are used to seeing. I have included a new damask print below for you to see a sample of what the latest patterns are looking like. Both the grays and damask prints are also sufficiently conservative to last beyond the "fad" cycle and stand up for a few more years than most trends.
An important note on geography: Most wallpaper in the Southwest is being placed in powder rooms. This helps create a small space, which creates a sense of security when guests are using this little important room. In addition, this rooms does not typically house a tub/shower to emit steam and challenge the glue of the wallpaper. If you are going to use wallpaper in a full bathroom, make sure and use your fan religiously or keep the doors/windows wide open. Many a manufacture will claim that their paper will “stand up to humidity,” but to obtain the best longevity from your wallpaper, make sure and stick by the rule of keeping the area well ventilated with little-to-no steam.
i love wall paper! i really want to put it in the powder bath, but have a hard time paying for it. i love the damask prints!! another thing to mention is that they make wall paper that actually peels back off. i know this runs more, but it is a little insurance in case you decide you don't like it:)