That sounds like a personal taste preference to me. If you're going for a vintagey look (and carrera subway tiles indicate that you might be) then I think your approach is better. At least it's what I'd choose for a classic bath with a vintage flavor (and I'm an architect too).

If you're going for a more modern look, then just tiling the "wet walls" is an appropriate approach, but at the same time I would probably think about using the subways in a less classic way than normal running bond - maybe a stacked bond or maybe a running bond turned 90 degrees. If I were doing that though I would want that wall to be between two outside corners and not have any outside corners. I believe your tile installer can bullnose your solid stone subways to deal with the edges but I think the look would be more successful if it spanned between two walls and didn't have an edge just "hanging out" there. IMO it would take away from the clean look of it.

I would think cost would be a factor in not running the tile along all walls. I think it would give it a real vintage look if that is what you are after. Since your layout is funny it may cost a small fortune to tile all walls.
Depending on how the room is laid out it may look odd to have the vanity area tiled and no other walls.

The transition would be taken care of by the chair rail. Go to the following link, and I've got several dozen pics of bathrooms that I've done, and several of them include ceramic wainscots.

Here is a link that might be useful: My gallery's bathrooms section

Thanks everyone!

kgwlisa: I really appreciate your thoughts. Yes, I'm going for a more vintagey look. The house is a 1920's tudor, and although I had fun 7 years ago re-doing a bathroom when I just discovered and really got into modern design, I really want this renovation to be more suited to the original house. And you pointed out my main concern: the sink wall would have outside corners. On the left side of the sink wall, the wall then goes back into an alcove for the toilet. On the right side, the wall steps back also. So this fully tiled sink wall would NOT be set nicely in between two outside walls. I do think the transition will seem jarring, so I am going to stick with my original plan and go with the chair rail.

Funnycide, I agree, and your thoughts are definitely helping me feel better about my decision, and Bill V, your photos are inspiring as ever! A pictures says a thousand words...

I'm sorry to be a pest, but if anyone has read this far and doesn't mind one more inane question.....

One of the reasons my architect was against doing tile up to chair rail height all around the room is that there will be a couple of very narrow places to tile. For example, there is a wall that is about 3 feet long (across from toilet alcove), but it has a built-in cabinet in it that is about 20 inches wide, so on either side there will only be about 8 inches of that wall to tile. I hope this makes sense--I wish that I had a picture to help. I think she thinks THAT will be too choppy :-) Of course, most of the room will have larger expanses of tile, but there are a few places like this. Do you think that is bad-looking?

Thank you thank you!

Do you think that is bad-looking?

Not at all. Besides, it's not what we think, and definitely what your architect thinks. It's what YOU think.

Here's ours so far. Only one wall tiled to ceiling and others with wallboard. Not finished yet but you can get an idea of how only tile on one wall might look.

Here is a link that might be useful:

Skinnj,

That looks beautiful! You must be thrilled.

I think that gets at what kgwlisa was saying about how it can be nice to do it if the tile meets up with inside corners like yours does. My situation would be the opposite, and it seems to be a more unfinished look in my mind. But maybe not--I'm just so bad at visualizing things without examples in front of me! But thank you for yours--it definitely makes it clear that there are some situations where one wall of tile can be gorgeous. Good luck finishing up!

Thanks! I know how hard it is to visualize and even harder to explain it! As you can see we have no mirror up yet OR trim or the door or anything else. This is a little better view to the ceiling.

Here is a link that might be useful:

I did it the way your architect is suggesting. I tiled all the way up the vanity wall and left the other walls painted. I like the look. Just keep in mind that tiling up the walls added a lot to the cost. Durarock had to be put up instead of just plain drywall. You can see the other wall through the mirror. I put artwork on the walls to finish the look.
Donna

Durarock had to be put up instead of just plain drywall.

Wrong. The only place Durock would have to be used is in wet areas, such as the shower or above a tub where there's also a showerhead. Any place else, the tile can go right over sheetrock.

We tiled about 36" up the wall and capped it off with a chair rail. We have a few very small (narrow) walls due to closets, doors, alcoves. Link to our bathroom below. There are two pages.

Here is a link that might be useful: Master Bath Renovation

Bill,
It may have been Sheetrock he used but I was fairly sure he used Durarock. Either way, it wasn't just a matter of putting tiles on the drywall. It added to the cost.
Donna