Go with a solid subway in porcelain or glass for a clean-lined look with your countertop and cabinetry. It can be laid in brick, stack or even vertical patterns.

I don't know how long you've thought about it, but maybe you really don't need a tile backsplash.There really aren't tiles that will not leave a granite lip, unless you build out the wall to accommodate the depth difference.

Would you consider stencilling or hand painting a design?

Thank you both for your ideas. I had not thought about the lip issue. Ugh. If I have to build up the wall then I might as well remove the granite backsplash, correct? In that case, should I still stick tom something simple?