Here's my latest idea for the sink area: use 2 cm (or possibly 1 cm) Torquay for the backsplash and bumpout shelf, similar to what firsthouse_mp did with her Ranch remodel. (Hope you don't mind my linking to your picture firsthouse_mp). The backsplash would match the countertop material.

Latest plan:

Here's the space as it is now. I removed top-heavy trim work and we're patching and repainting the walls.

Not a good picture but it shows the full wall here:

Window trim work could be something like this:

Traditional Kitchen design by Boston Architect Jan Gleysteen Architects, Inc

Thoughts?