Here is a photo of my DD bath. I liked that I could jazz up plain tile with the dorset liner. I also wanted a chair rail but found that the bullnose tile edge looked better. I also considered the smaller pencil ledge like the larger one here to finish. The white haze is dirt and the bathroom is ungrouted.

You mentioned that you thought about tile. I saw this floor in a magazine and knew right away that I wanted it in my newly remodeled 60 year old house. It combines tile and hardwood for a warm feeling but not the same as the rest of the house that has dark hardwoods. It was not difficult to do either. My builder and I did this one. Here is a link that might be useful:

My opinion will be biased because I have very similar tile in my master we redid 12 years ago. 4" squares on the diagonal for the shower floor and 12" squares on main floor and up the shower walls. Coincidentally we are in process of redoing my kids' bath the past few weeks (it was also redone 12 years ago) because a hard-to-find leak in the tub prompted us to consider replacing it....which then brought about the issue of replacing the tiled tub-surround that would be damaged...and we would also have to try to retile some spots on the floor because a new tub would be a smaller footprint leaving some bare spots once old tub was pulled out. My point is that we also had to figure out the whole, "do we do an updated 'patch job' to save a lot of money, or do we just gut it and accept the cost as the price of being at peace with it/enjoying a new look and improved function. Right or wrong...which is always a very subjective thing....we gutted it and I'm thrilled. I was not interested in painting my cabinets just to have them have peel-issues due to steam, and we also got rid of the tub altogether and opted for a stand-up/walk-in shower for my older kids. Resale was considered on this issue...but by the time we move, someone can either love it as we've made it, or we will price the house with an "allowance" in mind. The old space had hot-chocolate colored walls and 'slate' porcelain floor and tub surround...an overall warm and cozy feel but also tired and dated. The new space is a porcelain 'marble' hex with white subway walk-in shower that is awaiting glass doors...an overall calming feeling that is also bright and fresh. I now actually wish SO BADLY that I was able to redo/retile MY whole bathroom (tile similar to yours). And there's nothing wrong with my bathroom, and a planned paint job on the walls will help me like it even more...... In my kids' bathroom, however, even unfinished with the floor and shower tile installed just waiting for the rest to come together (waiting on backordered tile base moulding) ......... I walk in and just smile and breathe deeply because of the way the space now makes me feel :) So my very biased vote is to gut it ;) ;)

That is a truly beautiful and elegant kitchen. i can see why you'd want to replace the backsplash. I think you'd tire less of the lighter tile in the long run. For starters on the lighting, I'd check anything by Visual Comfort & Co from Circa Lighting. The light quality from those lights is superb. Also take a look at the modern designs from Hinkley Lighting. On your floor, you might consider a product like Loba's 2K Invisible Protect or Loba 2K Supra A.T. without a stain. White oak in lighter tones is very popular right now without any stain. Here's a video showing how Loba products prevent tannin pull in white oak when applied correctly: https://www.youtube.com/watch?v=Kbu7kCzd1P0