The first order of business is to tear it out of course, but before any of that happens, I'd like to pause and reflect for a bit.
I think it's one of the more egregious examples of a perfectly good art form put to waste I've ever seen. It is possible to paint trompe l'oeil murals and faux finishes in a way that isn't offensive and cheap looking but this sure ain't it. The previous owner paid someone a lot of money for that work, more than he paid for the rest of the finishes in the entire bath I'm sure.
What gets into peoples' heads I wonder. I know, I know I'm forever harping about people being free to express themselves but come on. Show some restraint already.