splashback with the colors you like,either tiles or paint??

I really like apple pie's idea of stainless backsplash and if your budget allows a stainless vent hood a replacement hood like your existing one would not be expensive! You could use any stainless kitchen appliances that u have as little accessories. That would tie your cabinet pulls and other stainless elements together. I like the wall color that is below the chair rail but the color above it looks yellow in pics. I think the taupe color would be better suited in the kitchen as a contrast to white cabinets. Your kitchen has good bones! ( this pic. Is similar to your wall color and shows the nice contrast).

Look uo the Houzz ideabook called "Brush up on paintable wallpaper" It's an affordable idea with striking results. Also, since your counter is light, you might consider painting the lower cabinets a darker color.

Thank you all for your comments and ideas. Gives me a lot to work with. Ptmatthews, I will look up your suggestion. Again, thanks.

Your kitchen is charming just needs a few tweaks . I would smooth the texture on the ceiling if possible. And change the fixture to a brushed nickel track with small halogen lights you can aim in different directions. Lowe 's & HD carry them. There are some beautiful glazed terracota subway or morroccan shaped tiles you could order on line in an olive green to give you that punch of color you are looking for.
Or as suggested above stainless steel backsplash with olive green fruit bowl, kettle and other accessories

I think a green glass subway tile would work nicely. It's classic and will add a little color to the space. I also agree with aniluap2 to change your light fixture.

Like Darzy's suggestion on tile, although not olive it is a pretty shade of sea glass green. Sold at HD relatively inexpensive.

What a cutie ! Some little things just to add color and life to the area. I'm adding some photos so you can see. A comforting color of sage green on the walls will start , and the back side of the island can be painted a accent color , maybe add wainscoting and distress, it. Over the island drop in two pendant lights , clear or color of your choice. If you just couldn't afford some can lighting and must have a fluorescent light , Home Depot about 80.00. It's cleaner lines and a decorative touch in brushed nickel to match the hardware . The stove wall is calling out for some tile. Below are a couple of choices to breakup all the white. There is also a pic with some of the things I've talked. Have good luck with your project, and have fun with it too.

Other tile

Color and backsplash tiles. The grey and yellow dont work together, may be the picture. Try a green with the yellow or more shades of the grey for contrast