Go to the ceiling with the tile and add color with items on the shelf. You might want to find a couple of railroad items to put on the shelves to tie things together.

I think you could keep the tile at the level you have it now or go up the ceiling. It's a personal preference and depends on the style your trying to achieve.

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First off your kitchen is off to a great start. It's definitely coming together beautifully. If you are worried about adding color you may consider tiling full height on the wall that houses the range (full height backsplash adds such a custom look, I highly recommend it!) and leave the wall with the window where you have it and paint a fun accent color. While the rustic railroad motif will look great it still leaves you needing that pop of color.