In this case, I would tile above the counter to below the upper cabinets over the window to the granite edge. I probably would not put a backsplash over in the other area. it is not needed. If you want it, then I would do the same.

I suggest you take the tile to the end of the island, and at the same height as on the LH side of the window (18"). Then, leave the side walls on either side of the pantry just painted so you don't end up with too much tile. This is assuming you aren't a really messy cook. I see that your stove is only about a foot from the LH wall. You should be ok; just make sure your paint is good quality so that you can wipe it if need be.