Now that both boys are taking baths every night, we've got a lot of wet towels to deal with every day. With only one towel rack in our bathroom, there's no way we could hang four separate towels without squishing them so much that they don't dry off. So I came up with a solution!
I took down the towel bar and put it in the closet (to be put back up whenever we end up moving) and I spackled over the holes. Then I hung up four silver Command hooks with those awesome removable strips so it doesn't damage the holes. Using those same Command strips I hung up house numbers that I spray painted black, one above each hook.
Now we've each got our own hook for our towel and I won't have to wash an entire load of towels every other day!