Am I reading you correctly that the plumber say to forget about a floor waste?
I'm with silent there, and I wouldn't want puddles on my floor. That's like my bathroom here that my old man laid flat, and the puddles are annoying.
I'm almost certain that they're compulsory in bathrooms.
AFAIK, in laundries you are allowed a dry floor waste not connected to a sewer, or you can have the floor falling towards an outside door, but I think they're tougher with bathrooms.
If I were you I wouldn't bother removing the sheets if they're unsupported, but I would go to the trouble of installing an angle flashing, glued to the floor, and up the wall at least the 30mm gap that you've got. It won't cost that much and a secondary barrier behind the membrane could save some future grief if the membrane fails.
Then I'd install a plasterboard strip, tape jointed as I suggested. It will give extra support to the bottom edge of the sheet if it's just hanging there at the moment, and it gives support to the membrane.
For cornice, you could consider P50 Shadowline as I've done in
my renos. You'll lose the shadowline where the tiles slip into it though, and your wall sheets need to extend up to at least the underside of your ceiling framework. Otherwise you could just square set the corners if you wanted.