My sink and window set-up are very similar to yours, right down to the window moulding abutting the sides of the cabinets. the only difference is that our sill is much deeper. We have a tall faucet as well. If you're thinking that you need to tile the sill because it will get wet, I can tell you that our sill does not get wet. Don't know why, but it just doesn't. If you want to, you could trim or remove the part of the old sill that sticks out horizontally and use a different piece of painted wood trim applied on its side. By this I mean so its front is flush with the front edge of the moulding on the side of the windows. This is what we did. We have a piece of moulding about 2 inches high and maybe 5/8 inches thick. The side window moulding runs into it. So it's like a frame to the window, but a different profile from the side moulding. It looks like it belongs there. We needed a flat moulding to have room for our faucet. We tiled up to the bottom of the cabinets, and the tile runs into (and stops at) the moulding on the sides and bottom of the window. It looks nice. Sorry I haven't learned how to post pics.

I'd agree on the surface with the comments above, but also say its possible that there was a reason (or multiple) for this. If you have significant concerns, I'd ask someone from the installation company to walk you through their measuring methodology as it applies here. A few possibilities: - Racked opening. You can see that the gaps are large in two corners and smaller in the other two. While a uniform 1/4" gap would be great, its rare in practice, especially in older homes. - Stepped jamb. Looks like there was an internally hinged unit in there previously, those often have a step in the jamb where the panel closes against. The gap on the face would look much larger than the gap at the smallest point in those cases. Its also possible that there was a step/stop of some sort that they couldn't definitively deterimine whether or not it would be able to be removed at the time of measure. We see striaght through on the side in your measurement shot, but we don't know what that looked like before, or what the other sides looked like. - They may have planned for a buck frame (generally a 3/4" wood frame) but in the end there wasn't clearance for it. - As far as being secured, ideally there would be shims placed on the other sides as well, however that isn't always done in practice. If this is still in progress it wouldn't be out of line to ask for it. The installer may say that the foam offers support and locks the window in place which is not lying, but shims would be best practice. - As far as finishing, was interior finish part of the scope of work? Typically it would be, I'd imagine that they would add some sort of finishing piece to cover up the gap/foam and make it look complete. At the end of the day, based only on these pictures, it looks to me like the only thing that you will really lose here is 1/4-1/2" of glass on each side of the window. That said, again, I'd definitely have a talk with them about why the gap appears to be so large and go from there.

I'm one of the people that hates to see tile jut out beyond the edge of a wall cabinet. I end tile in line with the wall cabinet and not the countertop. It would depend upon the tile. Given the size of the space, I would say not to carry it up around the window unless it is a mosaic type tile.

Beautiful garden. I think it will be difficult to keep grass looking good around raised beds unless you have a lawn mowing company and then it will not be a problem. As' localeater' mentioned I would not use pea gravel. Seeing your beautiful garden I would not use any kind of gravel, but I think a stone path between the two beds and from the patio would look good. Of course if later you decide that that is not the place for your beds then it would look silly to have a path from the patio to the middle of your lawn. Good luck on your garden.