If you are using a great tile, stone or ceramic tile all the way. You will see in the attached photos full tiled walls, can be same tile or 2 compatible tiles.

I personally feel that fully tiled walls feel either institutional or dungeon like, but it might just be me!

I personally liked having tile halfway up the walls in the hall bath in our last house. It is easy to keep clean and can add another dimension to the overall design,

We are considering that option for our new home as well. As someone else said you do want yo be careful with material choices so as to avoid that "commercial feel".

Another nice option is painted or stained wainscoting depending on the aesthetic you are going for...

I also like the tiles halfway up the walls.