I would not paper the bathroom, you are right the corners and intersections will sooner or later begin to roll and curl.
second, get a good quality of paint that is designed for the bathroom and that has mold resistance within the product. Sherwin has Bath and Kitchen paint just for this purpose.
You might need to kilz or prep the walls first to make this process do its job correctly.
Go to a paint dealer and present your situation as you did here and they will steer you in the right direction and you will only have to do this once.
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