It depends on the color of the backsplash tile - if the backsplash will look obtrusive sticking out into wallspace, then I prefer it to end with the cabinet. Else it will look like a square of tile floating on the wall. If folks want to do that, it's almost better aesthetically to go all the way up to the ceiling. But that's my feeling. As you see - the aesthetic is so individual. In your case, with just a couple inches to the end of the wall, it isn't as big of a deal, but if it is a darker color I would keep it ending at the cabinet.

I think you could do what Patti Bee did, and line up the marble tile to match the height of the tile under the window. This will give you more decorating options for that wall. You won't be limited to a small picture that has to hang up above the marble. If you extend the backsplash out, it may beg the question 'why didn't you make the cabinet wider?' If you have a shorter backsplash, it will look intentional.

I have a similar question five years later: Is the 4" matching back splash now out of style? And how long will it stay out of style? Doubt that it would be possible to get a full matching back splash 14 years after the home was built. I am considering removing the 4" back splash and going with a complementary tile or, perhaps, a colorful wallpaper. Thoughts as to how long the short back spash will stay out of style? (I'm old enough to remember bell bottoms - the first time they were in style.)

any of your options will work. I like more tile, so I'd do as much of the wall as possible cut the tiles around the beams. this is a cool idea so is this. second option would be to the tops of the windows. and then just under the window on the right since you have no shelving, I'd go higher showing you this one to demonstrate the tile and painting. (not pink,) did you ever consider doing a diff hood? I think the chimney SS style is a bit to modern looking.