When you say no wainscotting, does that mean you are running the tile floor to ceiling? How high are your ceilings in the bath? Is this a powder room for guests?

I like option #3, octogon/dot on floor. Don't know about the 3x6 subway installed vertically. As small as the room is, I'd see it horizontally and stop about 48 inches up, then paint and put something on the wall for ornamentation.

If you make a "wet room"....totally tiled....with a floor drain, you'd end up with a chance to put in a shower!!!
(just a thought)

Thanks for your reply. The tile only would surround the alcove bathtub (which also has a shower head) and run to the ceiling, so the remaining areas would be painted. The bathroom is small, and we just ripped out the 35-year old wainscotting, which made it look even smaller. Just found 5" hexagon tile for the floor, which might be an option and twist on the traditional, eliminating excessive grout with the typical 1" hex.