It's still a side splash, which I typically wouldn't tile, even though there's a cab over it. But you have a sink nearby. The granite looks tight to the wall, so I think caulk and a washable paint is enough protection from occasional splashing. If you leave standing water from draining dishes, I'd tile, but I doubt you do that with white granite. You could tile it the height of the raised bar, which I think is what you intend with your finger placement. But that leaves a small area of wall between the tile and cabinet, which would look like you ran out of tile if it were done on a row of cabinets. So you could do just two rows of tile. I would bring it to the end of the counter in that case, but normally I'd say stop at the upper cabinet. Tape some up and let's see what looks best.

ktj, I finally got a sample of the cameo today. I didn't really like it in the store and I liked it even less at home. For some reason they put more of the color "gunk" on it than they do with the Britton. If it had a lot less of the added color, it might not be so bad. The thing I really can't figure out is why in the store display--hanging vertically--the Britton bone has a much warmer tone to it and looks like it would go perfectly. But when you pick up a sample and look at it horizontally--or at my home in natural light--it has a very stark white/gray look. It's better than the Cameo but I need something with a bit of warmth.

You can do herringbone as an accent btw. Like under the hood. Herbflavors reason is probably along the lines of : Your kitchen is not plain. You’ll have two tone cabinets. Wood flooring. Windows ... it’s a lot of visual hopping around. I do think herringbone is a risk but will probably still look great!! I’m Totaly obs with herringbone also. I’m thinking what I’d do if this was my kitchen. Do you like finger tiles? It’s basically the small tile you picked it. It’s very pretty also! Love that...

Also, the kitchen is small and does not look to have the typical 18" high space between counter and upper cabinets. While the herringbone is beautiful, I think you needs some height so you can truly appreciate the pattern. You'll probably want to go simpler in a warmer white tile. I'd be inclined to select something more vertical in design to draw the eye upwards.