It depends upon the tile size, if it has pattern/design in the tile. Granite generally has specific colors and movement. If the tile has movement or has decorative details it gets lost in the granite. Or, what size is the tile? If it is only 4" then are you going to have a full tile and a partial tile that has been cut? Best thing to do is just make that step up area (which is usually about 6") granite. Make it go away.
The only time you want that splash tile is if it is tying into other tile splash areas. In your case, it is not. You are talking about an island.
Rule of Thumb in "Interior Design 101"......you either draw attention to it or you camaflouge it and make it go away. Which do you want?

I have the granite as my backsplash. My step is 6" up. I was unsure what to do also, but I'm very happy with my choice. Here is a photo.

The tile on my bi-level island matches the other backsplash in the kitchen. Using small (2") tiles sort of solved the problem of having 1 1/2 tiles in this area.

I chose this combination of tiles to tie together the floor, granite, and cabinets. And, the island is the first thing you see when you come around the corner after entering the house. I think this backsplash adds just the right amount of pizzazz, without being gaudy.

{{!gwi}}