I'm afraid I must disagree with the suggestion that green on the walls will tone down the brick. Actually, the opposite is true...colors that are opposites on the color wheel will bring up the color in both...so green makes orange look twice as orange, and yellow makes purple much stronger. We dealt with the same issue by painting our walls a soft neutral, and then putting a four to one mixture of water and paint in a bucket, washing it onto the brick chimney wall with a big paintbrush, and patting it down with a handful of cotton rag. This method works wonderfully to control the look, and keeps the variety among the different bricks, while tying it all into the room in a much more sophisticated way. It took one morning to do the whole thing, and gave the effect more of stone than brick. I wanted the hearth to relate to the dark floor rather than to the wall, because it keeps the brick wall from intruding visually into the room area...so I painted the inside of the firebox and the whole brick hearth flat black. Then I brushed a second coat of semi-gloss black just over the surfaces of the hearth bricks themselves, which made the whole thing settle into the floor. The grout stayed flat and shadowy, the nooks and crannies likewise, and the effect was much more natural than the dustiness of just flat black, or the fakey plasticky-ness of all semigloss. You could do the same thing with a deep tone of your carpet color. I wish I had a photo to show you. It looked wonderful, if I do say so myself!

I can't comment too much on the backsplash because it is hard to get true colors on a computer monitor. On my monitor, it does not look that bad and I've seen so many that are worse:) First, consider a change in paint color. I love blue - its my favorite color and major color for accents in my home, but it is not the best kitchen paint color. It will take two coats to cover it, so you might want to try a lighter neutral, maybe a cream or a white with either a beige or gray under tone depending on your preference. That will help you visualize without competing colors. If you do decide to change the backsplash, at least some of the best possibilities are not that expensive. It is true that it is best not to tile above a 4" splash, but people do it all the time, especially if they have a laminate counter and the 4" splash cannot be removed. Two possibilities are beadboard and subway tile. Here is a kitchen that also had wood floor and light countertops and did beadboaed. Notice also this kitchen has some glass front cabinets. You can have the panel removed in one or more cabinets and replaced with glass to reduce the amount of wood: http://ths.gardenweb.com/discussions/4512247/finally-finished-with-kitchen-updating Here is subway tile: I used subway tile in my own older wood kitchen which also has wood floors. Pics are in my "my pics" idea book.

Post photos.

@kloikith OMG I had to double check this post. This is my same bathroom!!! I thought my husband had posted this lol! We don't have the wall paper. PO painted the wall white, but the layout, the tile, the toothbrush and soap dish holder, towel bar, shower door and medicine cabinet are exactly like my bathroom! The white paint tones it down some. To me against the white walls teh tiles appear pinkish brown ad reddish brown. I'd recommend just an off-white or white. It brightens it up and feels a little bigger. Do you ave remodel plans already? Ours will be a few years down the road but I'm at a loss for what we will do.