My parents' house has that configuration as well. (Monster house out in the burbs) But the bathroom is large enough that you would have to be in the shower for a very long time for steam to build up enough to make it to the closet. I think if you have the space it can make a certain amount of sense ... clothes are right there after coming out of the bath.

I've also heard about people starting to put W/D in their master suites as well. Other than the noise, if you can deal with drainage and venting properly, this probably makes a certain amount of sense too. Totally eliminates the need to haul laundry up and down the stairs.