Hello dreamcatcher,
yes, that is supposed to be a toilet.
I'll show you another floor plan variant – there I planned roughly as you wrote.
In the hallway area, built-in closets are planned in the slants to create more space in the rooms. In other words, basically just a bed and later a desk.
The current ES would also initially be used upstairs as a play and common room, and not selfishly as an unnecessary bedroom for us :P
