Tom, thanks for the post....very useful information. The bathroom remodel is for a customer that doesn't want a "plastic" finish and is insisting we use oil only. I've warned her that this leaves her open to wood movement and possible joint issues if she leaves standing water on the vanity. She seems willing to take the chance so I guess it'll be an oil finish.
As for the joinery adhesive, I'm thinking if we're only applying oil as the finish we might want to use the expoxy instead of glue, although the Tite Bond tech support guy says their TB III is tested waterproof and will perform as well as expoxy as long as the joint edges are clean (no gaps). I've already run the stock edges over the jointer. It sounds like you've used TB III successfully for wet environment application.