truthfully, nothing really seemed discrepant just looking at the image as is.Is that drywall-can you just leave it? Don't think I'd put a rail or anything hanging either...when you get to backsplash, maybe some tile application, depending on what you do, could be an option.

My guess is, if you don't like the drywall painted the same color as the rest of the kitchen, you may want to have some panels made to match the cabinets and use them to wrap the corner. Failing that, and depending on your backsplash plan, you could tile it to match the backsplash.
If it were me, I'd just paint it.