Do you have any photos of it as is?

There are several threads on GW related to this vary topic, some with photos to give you some visual ideas.

I like the "stepped down" approach.

See: https://www.google.com/search?q=ths.gardenweb+tile+ending&ie=utf-8&oe=utf-8

HTH, tmy

Under the cabinet. I have the same situation and have found that to be the least obtrusive. Whatever you do on a wall, at eye level, is going to draw attention to that area. IMO stepped is worse than going to the end of the counter because it makes a geometricly patterned feature of the area.