I did the same thing in a basement bathroom. You are correct to do everything possible to prevent the paneling from getting wet.
The only other thing I would suggest (and it may be too late)is to keep the panling a couple of inches above the floor in case there is flooding, which is likely to happen at some time in your bathroom. I put cement backerboard in the two inch space beneath the wainscoating and finished it with a tile base, although you could use wood baseboard as well.
Make sure that you keep the paneling away from the shower and tub area.
Use adequate ventilation (bath vent fan) to expel the moist air from your bathroom.
I assume that you have a drywall or plywood backing behind the paneling so that it will not buckle.