That all depends on your budget. It is lovely to bring the tile quite far up the walls in the bathroom, but very expensive. Older houses often have this style of tiling, but today it is more of a luxury. The only parts of the bathroom that need tile are the parts that get wet (shower/tub area, floor, backsplash). Having said that, it is indeed beautiful and desirable to have more of the room tiled if you can afford it.