I have seen both done, it's really personal preference. In this case, I guess if it were me I would line it up with the cabinet.

Normally I like it ending at the cabinet. But in this case I'm not sure. Would you be able to fit one more full horizontal piece on the bottom, so it would not be cut off into the square, one more full diamond, and then the pencil edge? Is it possible for you to tape that look up on the wall and photograph for us to see both looks?

Flush with the cabinet, just inside the bottom molding profile

I'd run it to the end of the flat portion of the counter. Otherwise, you'll have a funny, empty space between the bottom of the first run of tile and the curve of the ogee edge.

Or stop at the end of the cab.

I had the same issue with my remodel. I ended up running the tile to the end of the wall and up along the side of the cabinet about 2 inches. I am glad that I did.

Here's a new angle. I'm thinking now to end with cabinet line.

End at the cabinet, you have a nice visual line running vertically ceiling to floor.

Yes that angle shows it way better. I'd definately end at cab. Otherwise, I just realized you would need to put a tiny piece of the dark pencil on the top edge over to the cab. I like it just being a straight edge and dying into bottom of cab.

I had the same thing I two spots in my kitchen. I didn't think about it until the tile was going in so I made a gut decision to just end it at the cabinet. To a critic it may be the wrong way to o this, but h

onestly, I haven't given it a second thought since. Although, I do think I'm supposed to have some sort of end cap that finishes off the edge, but it wasn't in stock and never bothered finishing it once the tiles came in. Here are pictures of the spots in my house.

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Rebeccamom what color is your paint please?? Thanks!

BM Serenety. Here is a better picture of paint color.

Actually, seeing it in the post, that makes it look more blue than it really is;) In reality, a muted grey/blue.