gray subway would be nice

Yes, gray glass subway tiles would look great.

http://www.houzz.com/photos/query/gray-glass-subway-tiles/nqrwns

Top left is ceramic.. is glass tile a better option?

I just like how the glass tiles brighten up the space. We chose a blue glass subway tile for our small kitchen.

If you are comfortable tiling, love crazy challenges, or are hiring it out, I think glass would be awesome. You can ask for samples I know any box store would have both and see what looks best in your lighting. Check especially in the morning my best friend had to redo her redo because the shiny tile caught all the morning rays and turned her kitchen into a disco ball.

Yeah I like the gray subway tile idea. Other thoughts could be a light brownish stone blend with Glass. I'm pretty sure with that amazing countertop you have it will turn out Fantastic!

Oh, the only problem I foresee is the countertop has a 4 " ledge going up the wall that should probably be removed. You want the backsplash to run right up to the counter top. Don't run the tile into that ledge it will look off.

Jennifer is absolutely right!

Yep, remove the 4 inch granite.

If I remove the 4" what would you recommend for the transition in the lane way along the back wall

Agree with the other commenters, light gray subway tile and remove the 4" bs.

If don't understand the question, what is the "lane way"?

I know what your saying. I've used a piece called a tile edging trim piece. They have them in many shapes and colors. here's an example.

Also they have bullnose tile that works too. Here's a pic of a project I did a few years back.

Its hard to tell but the edging on both sides has that Aluminum trim on it. You may have to zoom in. I'm sorry I don't have a better photo for you.

Thanks Greyfox! Much appreciated

I have a "backsplash" on my granite counter top that is below my subway tile. I've never had anyone say boo about it and I think it looks good! Don't make more mess for yourself... Cute kitchen!

Your kitchen looks small. Your countertop has a lot of movement. I wouldn't complicate things. I see no need for a backsplash other than what you currently have. The money could be better spent somewhere else.

Thanks everyone!

By laneway I mean the section between the two counter tops (ie do I extend the backsplash to the perpendicular wall; partially). See photo below but ignore the colour, this was the old colour of the kitchen.

Cjberryman, do you have any pictures of your kitchen? Though initially I had thought i would keep the current 4 inch backsplash, I could easily just add this task to the contractor to remove and just paint what is required with the excess paint.

Keith, this is a matter of debate but I will tell you what is now preferred by the majority of designers and homeowners. It looks best when the four inch backsplash is removed before adding additional backsplash. A "sidesplash" is no longer added. Here are two images. I am not suggesting gold for you, I just wanted the image to have contrast.

You see the side wall is only painted and the gap caulked. If your gap is too wide to caulk you will have to use a trim there which I leave to the professionals but no tile (other than trim) is desired there. This would be the side view:Countertop dies into the wall with no "sidesplash" Most think this is a smoother look.

BTW, there is grout paint to use on floors which I suggest for you. Here is an image of a floor with part of the grout painted.

Painting the grout to match the tile quiets the floor a bit.

Thanks everyone for all the great suggestions and contributions. We have decided to remove the old backsplash and are likely going to go with one of these two suggestions. What is everyone's thoughts?

i still like the gray! but do not extend it to the side walls , just keep it to the back on both sides of the room. {PS, laneway is a Canadian word, lol. which is way pple might have been confused..), galley kitchen. or runway might have worked lol.

Yeah, we are not extending it to the sides. And haha makes sense now, should of called it a galley kitchen!

And yeah I like the grey better as well but my partner prefers the lighter beige. Either way I think we will be happy but just trying to find the tiebreaker vote!

i liked the beige when it was left of the sink and the gray when it was to the right of the sink so ... time of day might change things, i say pin them up if different spots for a day each.

Not the grey, it doesn't match the granite nor the cabinets, go for the lighter tiles. Keep it simple!!!