I've definitely lived in some interesting places. My first apartment consisted of a 12 inch television sitting on top of a cardboard box and I had a bean bag chair as a couch, but I've never seen this. An apartment listing via craigslist in St. Louis appears to have a bathroom/kitchen combo.
Meaning you can maintain an eye on your grilled cheese cooking while you shower or heat up some water for some hot tea while handling some "business." Could you imagine the comments on House Hunters? They'd be like, "um, I just don't know if I'm comfortable with a bathroom in a kitchen. But, I guess if it gets the job done, then what does it matter? :/