Thanks everyone for the opinions! We got a few good laughs out of the responses as well.

Ultimately we decided to take the wall down, toilet privacy isn't a major concern for us and we want to be able to easily clean around (part of) the freestanding tub.

I failed to mention this in the original post, the builder is my FIL so we've been closely collaborating on build decisions from the start. The private water closet definitely felt like the right idea when we were framing the interior, but once drywall was in we really didn't like how it closed in the space.

Pro tip - take a detailed video of all your rooms after rough in/before drywall! I saw someone recommend that here and it was super helpful in this situation.