These setups usually suck because the paper towels rarely come out one at a time, and the trash can is right beneath to catch all of the wasted paper.
I’m guessing they get more people washing their hands and using paper towels than they anticipated, so they decided to use a laundry basket as a plan B. Nice!
The current trend seems to be using hot air dryers over the paper to save energy and ultimately labor/materials, and it’s touch free which is a plus since no one wants cooties.
I’m waiting for the composting of restroom paper towels as the next big movement. Think about it: what’s in a restroom waste can other than paper towels? Not much. Wet paper is a great item for compost, too.