Also, I'm thinking I may paint the walls in the kitchen a different color as the off white color we chose clashes with the white cabinets and back splash. Here is a photo with island included;

Grey would work with your counters and cabinets. What color is your backsplash? On my computer monitor, it looks gray. If it is gray, you might want to find a grey with blue undertones.

Yes, your kitchen would look lovely in grey or blue

The tile is easy enough to remove, there will be damage to the drywall but once that is repaired I think you'll be happy with the result.

It is only needed on the back wall so I agree remove it from the sides

I don't like the look of it continuing on the side walls. If you are wondering now...you will never like it. I would definitely change the paint color. What is the floor like?

People do it both ways all the time. There is no rule that says you have to stop at the corners. If the paint color is to remain neutral i would leave it if its a huge contrast it will probably stand out too much. About 4 hours of work to repair sheetrock and repaint no biggie.

the floor is a dark laminate "wood".

Hi ladies
I completely disagree -I always want mY back splashes tiled with returns, it looks more finished, complete and high end.
When the back is only tiled, it looks like you ran out of tile.

Good lesson to be sure to tell your installer exactly what you want, never Assume they'll know your preferences. This installation looks perfect to me, except I find the paint colour is wrong...
Good luck with your project...

I appreciate all of the feedback, thank you!