I would only put tile to baseboard height on all walls. The floors, shower and tub area would be tiled. There would be backsplash on the vanity. Tile styles change. The more tile you use, the more you set the room in 2020. You can always paint drywall to match the fashions that are current at the time.

Not even close: standard height. I love to watch all those people balancing on the counter height stools when they try to move. They sort of jump with the chair in or out. Also, these are horrible for posture, unless you want everyone hunched over..

IMO the kitchen needs more than anew counter and as fot the height of the peninsula I like the extra workable counter with it all one level . I think addressing the electrical would be my first step since where you need the plugs you have none and the new codes should be used for sure . I also think the counters you have work with the floor and the new ones not so much.IMO stop and think about how this space functions for you and then fix the function before changing any counters If you decide to go ahead with new counters make sure they have steel supports for the overhang not those corbels.

@AJCN yes. Planning a tub/shower combo. Kids typically take showers these days. And I would like to be able to use the tub from time to time. Also just saw the American Standard Studio as a possibility...