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.

Thanks for the ideas and pics remodelfla and jb1176. I took a look at Lisa's oatmeal tile and subway backsplashes, and really thought they both looked beautiful in her home. I've actually been leaning towards using a plain white subway, but I believe my husband would like some color in the mix. I also really like (but not sure these would look good in my kitchen): ljsandler's diamond backsplash... meg's subway tile... Would a white subway or diamond tile work in my kitchen? I don't have as fancy a kitchen as Lisa, LJSandler or Meg. I'm still open to color, but I've visited a few tile stores and am having a heck of a time finding a tile that really picks up a color in the granite. There are so many beautiful stone tiles that just look too gold/yellow to suit this granite. Sigh, this little decision seems to be consuming so much of my time lately.

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.

What did you decide?? We're in a similar boat and trying to figure it out :)