it just depends on personal preference. I've seen them both ways. you could add another little set of cabinets on top with glass doors to display items, or just leave them as is and place a few accessories up there. unless you think it will really bug you to not have them up to the ceiling and end up regretting not doing it

if it ain't broke... you could use the money elsewhere (better lighting ;) )

You might find these pages useful and interesting.

This page at kitchn.com has some ideas for how to use the space so that you just don't collect dust there: (http://www.thekitchn.com/15-ways-to-disguise-a-soffit-reader-request-week-204890) and this one is found on this website and the comments are very helpful, indeed (http://ths.gardenweb.com/discussions/2690105/recommended-height-between-counter-and-bottom-of-upper-cabinet), and finally, another resource found on this website: (https://www.houzz.com/photos/bulkhead-phbr0lbl-bl~l_548)

As far as treatments for that space as offered by the Kitchn website: I prefer the first, third, fourth, and ninth ideas for your kitchen. How you decide to treat the space depends upon the design for the space, of course. :)

As I looked through the options offered on the Houzz page, I really like the idea of disguising the bulkhead with sheetrock and moulding and painting it to match the cabinets. The most successful treatments seem to be white to blend in with white cabinets and a white, white ceiling (which also helps to reflect light back into the room).

This is definitely one of the pet peeves in my kitchen. So much wasted space and not enough room for my coffee maker or mixer to fit under the cabinets on the counter. I have opted to try and put pretty things up there to give the illusion that I like it. Vases and vintage cookie jars/teapots. My friend has put faux plants on hers.

Thank you all for commenting!!

I think it looks fine at this height, and extending the cabinets higher won't really give you any more useable space (unless you are a very tall family!) so there isn't a strong reason to spend the money on that. I like your idea of using color, and you could display things up there if you wanted (and don't mind needing a ladder to dust occasionally).