I'll go with Brickeyee's method...quicker, faster, easier. Most of all its the better one. Use a proper carpenter's knife or a lino knife to cut along the bottom and top then use a drywall saw to come down each stud. (buy a couple or three drywall saws, you will need them) You only have to smack out the tiles that are in the way of the up/down cuts. Less broken tile bits flying about, the better. (I'm assuming you don't have power tools...me, I'd tape/cover/protect the counter top, etc*. and use a recip saw with short blades...those blades will have Demo stamped or marked on them, wood blades won't work very long)((Actually the Demo blades may not either, depends on if its mastic or thinset right now)) I'll also back up his suggestion to lay ply or at least hardboard on the counter tops. *I'd also bag the upper cabs, paper the lowers and use a movable sheet of ply or board right under where I was actively smacking tile, lean this up against the lower cab faces, between you and the cabinets. I'd have the floor covered with paper and mover blankets in that order at the least. Then a sheet and a half of cement board re-installed where the drywall used to be, set your electrical boxes back in, thin set, tile, grout, caulk, done. Going over the old drywall is not a long term fix. Two day affair and that only to allow the thinset to set up overnight. If you spring for modified thinset with accelerated dry time you could do it in a long day. I know mastic works but I use thinset anywhere water is present. Even a backsplash.

The description of how to do it sounds harder than it actually is. You will need to remove the drywall entirely and replace it with cement board It's easier than replacing it with more drywall as you don't have to mud it flat and the fiberglass mesh tape just needs the lightest skim coat of thinset to set it. To be able to do that job, you will need a heavy bladed utility knife, a flat prybar, a hammer, a T-square, a cordless drill of at least 12v, stainless steel screws, fiberglass mesh tape and cement board. The cement board is 36" x 60" and you will need a way to haul it home. Screw the cement board to the studs, getting the screw heads slightly indented into the surface of the board. Spray the cejent board with water and mix up a small batch of the thinset and use a flat bladed drywall tool to smooth it lightly over the seam. Imbed the fiberglass mesh tape into that smoothly and let dry. To be able to install the tile, you will need the dry mix thinset, a bucket to mix it in, a large paint stir stick to mix it, a notched trowel to apply it, the correct amount of tile, tile spacers and you will need a tile saw. You can purchase an inexpensive one for around $80 and have it for as long as you need it to be able to little bit the project to death. If you rent, you can expect to pay that $80 for a 24 hour rental, so really, it makes more sense to buy the saw and then you can take as long as you need to and you'll have it for other projects. Once the thinset has cured, you will need to grout it. You will need the powdered grout of your choice, another bucket to mix it in, another stir stick, a grout float, a couple of sponges and a bucket of water. Some microfiber cloths to polish off the rest of the residue after it's dried is also a good idea. You will want to seal the grout, so you will need an applicator bottle and grout sealer. Getting the items you need is half the battle. It's also a good idea to practice on a garage sale find and create yourself a small patio table first while you get the hang of how to mix up the thinset and grout.

Yes, shelves do interfere with venting. If the venting is the correct power and design, it will still be effective, but you will have to clean the bottom of the shelf periodically, which can be sometimes be an acrobatic endeavor. All that said, I have a large, high, stainless steel shelf and I am not sure that I could get used to not having it, despite the cleaning issue. I keep my most used bowls and mortar and pestle on it and reach for them while cooking daily. However, I suspect that you have a cleaner aesthetic than I, so you may not desire that arrangement. This post was edited by kitchendetective on Mon, Dec 29, 14 at 14:39

"Angie’s List and Home Advisor are now one and the same. And they charge the contractor for bad leads, with no real recourse. No good contractor wants anything to do with any of those type of referral sites." The Cook's Kitchen - I do not agree. Angie's List charges service providers to advertise on its site, which is different from Thumbtack and Home Advisor which charge a fee to the contractors in order for them to bid a job. On Angie's List, the contractor can choose not to advertise, and will still be listed on Angie's List, and still have consumer reviews for other consumers to see. I've found numerous contractors on Angie's List and have had very good experiences with them. There was only one that wasn't as good as its reviews. I think I've probably used 10 contractors over the years from Angie's List, so 1 in 10 isn't bad odds. Thumbtack contractors seem often to create bad experiences. The number of people with the connections and ability to get good contractor referrals (like you have) is small, especially with new homeowners. Sometimes referrals from neighbors/friends lead to bad experiences. Referrals from relatives are always a bad idea. Not everyone has a designer, or is experienced in knowing signs to look for in a good contractor. Angie's List helps those people.