I would like to put in a kitchen backsplash but am having issues with determining the height, what to do with existing 4" backsplash, and where to end the backsplash. Any advice would be greatly appreciated!

Height

I have come up with three options for the backsplash height. Which would be the best option?

1) Tile up to the hood and level the rest (around the windows) at the same height.

2) Tile up to the hood and level the rest (around the windows) at the same height as the bottom of the cabinets.

3) Tile the entire wall up to the ceiling to create a feature wall. The ceiling is 12 feet tall and my husband thinks it would be silly to have more backsplash above the cabinets than below.

Existing 4" Backsplash

I would love to remove the existing 4" backsplash but need some data points to convince my husband. Or would it look okay to leave the 4" backsplash?

Backsplash Ending

The cabinets wrap around the wall to the fridge. Should the backsplash wrap around as well?