Hello, Erin. Welcome to the forum.
You could make that wall out of Kerdi board if you wish. Do you just need the extra space? If you had a Kerdi board wall with tile on one side, it would be about 2 1/2" thick. A standard wall with sheetrock on both sides and tile on one side would be about 5", so you'd save 2 1/2". Is that what you're going for?
You could tile just enough on the Kerdi board wall outside the shower to cover the profile that covers the end of the wall, provided it won't interfere with the placement of the vanity. You could cover the remaining exposed Kerdi board with sheetrock mud and paint it.
However, I would not use that wall to support a shower door, unless I could swing it from the other side. Would this be a frameless door?