First some background.

The bathroom ceiling looks to be a troweled sand finish
and is just under 8’ The current shower unit is one piece built
into the corner as shown in the picture.
I’m taking that out and putting in a tiled shower using 12 X 24 tiles as
shown in the picture below. The wall on the
right of the shower will be shortened to about 4’ and glass will be used above that
and for the front of the shower.

If I take the soffit out which my wife wants (it’s empty) I
can’t match the new ceiling to the existing ceiling in the rest of the bathroom. As a result I would use the same tile as the
shower walls to tile the new ceiling where the soffit was.

Now the question,

Would it look better if there was a small soffit of a few
inches instead of tiling the ceiling. I’d
probably tile the soffit ceiling anyway.
I just can figure out the tile directly on the full height ceiling would
look strange and if the soffit would be a better idea.

Any suggestions would be helpful.

Current Shower

Tile below