ANSWER: Fire Safety Compromise
This bathroom towel rack has been installed over an active electrical wall heater creating a potentially serious situation.
As we so frequently discuss safety issues on this forum, we again want to remind our readers of the hundreds of lives, thousands of homes, and millions of dollars in damage incurred annually from residential fires. Many of those fires began through no outward negligence on the homeowner's part, but rather a lack of safety awareness.
The heater in this picture will get quite hot and should never be in close proximity to combustible materials. The manufacturer most likely would agree and has published minimum clearances required. It's possible this unit is manually controlled and the owner wouldn't think of leaving it running when he's not in the room. However, if the owner is like many of us, it probably makes more sense to err on the side of caution and reinstall the towel rack on another wall.