The homes in my subdivision are like this. Some people tile the wall surface and then put a little tile on the living room floor. I chose to use the Schluter Rondec trim and I like the way it looks. It's up to you.

Here is a link that might be useful: Schluter Rondec Step

Here is a photo of what mine looks like from the upstairs. See the silver trim? I don't remember where I bought it from. It was a company that advertised on the John Bridge forums.

Yes, I haven't installed floors in the living room yet.