Anyone cover small bathroom that had ceramic tile without tearing up ?

Hi John I've heard of people both painting and covering tile like you're describing. If you cover it (whether with sheet rock or anything else) I would use liquid nails besides really long nails and or screws so you make sure and penetrate through the tile into the wall behind it.

I have seen a friend cover tile with thin plywood boards and trim, all painted white. I do wonder though if it is a full bath if the steam from the shower would affect this over time. But it did look lovely.

People have put bead board or wainscotting over tiles that are not in the shower or tub.

You can paint tile and use a stencil too which is very trendy right now.