Keeping the existing waste pipe, hot and cold feed pipes and ventilation extract will make the replacement a lot cheaper to do MacB. There are some really goo fittings around so depends what so of look you want.
The options for putting in a bath have already been discussed by with a 1200 wide space but with a conventional 1700 x 700mm bath you will just make it feel cramped and tight to use so I wouldn't do that. The door position is critical and I would leave it where it is on the long side as an end door will just increase the sense of narrowness which you want to avoid. You need a clear width of at least a 800mm to fit a wc ideally 450mm [500 or 600 is better] off the wall to the centre line of the wc to avoid a cramped feeling.
The alternatives are a deeper tub bath to fill that end of the room but never seen one 1200mm wide.
If I were you I would keep the existing arrangement and go for a really elegant 1200x 900 walk-in shower tray to fill one end with a glass screen arrangement - you can get some really sophisticated screen arrangements now to avoid splashing. The wet room idea is great if it is well ventilated as Reg says, but don't go for an open shower area as the water will go everywhere and the main problem with a timber floor and timber studs is that you can't effectively tile the floor and walls without them cracking so the tanking at the floor/wall is critical as Aperitif says.
Line the existing walls and floor with marine grade ply to make the whole area more rigid and to provide a good fixing backing.... but add additional floor joists and wall studs at critical load points if the existing ones aren't under the wc and bath/ shower locations, especially if you are tiling, and use a paint-on tanking solution to seal the ply/wall/floor junctions after you have fitted the drainage before you lay tiles to avoid any risk of leaks. Any plasterboard in the bathroom needs to v=be moisture resistant, any existing plaster needs to be sound and sealed.
The wall hung toilet pans with concealed cisterns hidden behind 300 deep wall hung cupboards and inset counter top wash basins look very neat and hide all the pipework you v=can incorporate towel shelves and floor to ceiling storage in such a big space so think about colours early on as you can integrate everything together.... cherrywood looks good against stainless steel and chrome fittings..... just make sure you go for a back to wall wc with easily replaceable cistern fittings as access is difficult. Put the wc on the short side and the basin on the long side opposite but offset from th door which can open back against the shower end. Inset lighting to the ceiling must be bathroom fittings - again LED ones are great.
Mirrors ned to be bathroom sealed ones so the condensation doesn't get into the mirror backing and make sure you get an electric heat mat fitted behind the mirror which you can have operated off the extract switched circuit. Bigger the better to make the room feel bigger.
Extract needs to be fast and large enough tho cope with the high condensation levels.... if possible go for one in the centre of the ceiling over the shower so that it is removing as much of the water vapour as early as possible. You only need to insulate external walls.
You can lower the ceiling with the extract duct and lighting concealed to make connecting to existing points simpler and it reduces the room's volume to quickly lower the humidity.
Radiators come in all sorts of shapes and sizes now but use the BTU/kw calculators you can access on line to get the right size.... ladder ones are great for drying towels but get a dual electric/CH one so it works in summer.
Using back to wall wc with wall cupboards allows you to lay a simple linoleum or tiled flooring which has no cut-outs for toilet fittings so easier to fit.
Finally, if you're not doing the work yourself, get a plumber who's been recommended by people, ideally with OCD as they are particularly obsessive about getting everything right.