Between me and Cabbage (when she's home from school), we have plenty enough towels to use in a week without reusing any. We don't use washcloths for the shower - or at least, I don't. I use a scrubber with my body wash, and I use washcloths to wipe my face when I wash my face after the shower.
I do the towel laundry once a week, and that's when I change out the hand towels in both bathrooms (our bathroom and parents'). I can usually fit both sets of towels and washcloths, plus the dish towels and cleaning rags, into the washer. The only pain in the butt is that one of my towels and washcloths has to be put on the delicate cycle, so I have to wait until Thursday, when I do all my clothes laundry, to wash those.
Right now, the air is so dry here (dry and pretty cold), that I can leave laundry to hang, and it'll be dry in an hour, tops, unless it's very heavy.