Thanks for all your feedback. I will definitely be using the recessed lighting in combination with some sort of vanity lighting. However, I'm doing this simply to bring more light into the room. It's a fairly large, full bathroom with a shower and linen closet. For the past 30 years the ONLY lighting in the room has come from the vanity, and after living in this house for 24 of those years, I'm tired of it being so dark!

The CF's might not be the best way to go, as I'd understand why they'd be prone to failure in this application. As far as other lighting besides recessed: I have gone to both Home Depot and Lowes just to see what they offer. My problem is this...
I only really have 1 wall to work with as far as lighting goes. The room is very long with a 5 piece bath/shower on one wall adjacent to a linen closet. The opposing wall has our vanity and toilet. The entrance door takes up the bulk of the "short" wall, and the window/shower/toilet are up against the other short wall. A floor plan would probably illustrate this better

. But really I only have the wall with the vanity on it as good lighting real estate. Hence the recessed lighting.
Do recessed lights really look that bad in a bathroom when used in conjunction with a vanity light?