I recently moved towels into one of the bathroom drawers and haven't noticed a problem. I know lots of people that store towels in the bathroom and they have never smelled musty (and we are in humid, stinky-water Oklahoma, lol).
I also like everything hidden (scales, tooth brushes, potty chairs if not being used frequently, etc). I have two empty cabinets in my upstairs bath, even with moving towels in and having my teenage sister move in. Moving the towels did give me extra space in the linen closet, which looks nice :-)
Wife to Joe. Proud, tired mommy to Captain Destructive (6/09), Sir Screams-a-lot (8/10), and another little miracle due 3/13.
Trusting God brings life. Believing brings rest.