Could you clarify what you mean by "the nook"? If you mean over the stove top, I would caution you to make sure you're not using something flammable. Otherwise I think the brick style would look fine.

It looks like your ceiling is yellow. Have you considered painting it white? It would make the room feel brighter.

The one thing you said you want to change is the backsplash, so the advice "decorate around the existing backsplash" probably isn't the best option.

I have that bland 4-inch tile backsplash in my 80's-reno kitchen, too. We've painted the cabinets already, and rather than changing out the tiles, I'm probably going to hand-paint them with a geometric pattern.

By nook I was meaning the island type area of the counter. Ceiling isn't yellow but does look that way in the pic. I don't like the back splash at all! I think part of the problem is the tile is white and the cabinets are cream. Makes everything look really dingy. I really want a new countertop so best time to paint the cabinets. Also!.... the previous owners painted only the outside of the cabinets and doors! Really bothers me. So if i have to repaint etc. i might as well do a nice update. Thanks for the comments!

I'm not sure about that brick stuff. Are you sure you don't want a different tile? What color were you planning on painting the "brick"?

I know im not too sure about it either! I thought it would be easier than new tile? I don't have experience in that area..

May I ask how many inches is the overhang on your counter?

In general.. 1 1/2. Island area is about 10 inches.

I originally was thinking to use beadboard as back splash and around the Peninsula... think that will look better? Is it weird to use brick wall panel when its very obvious its not real?

Any tile that comes on a sheet is pretty easy to put up and I think it's what people like now. You need to pick your countertop and a general color scheme though. You say you don't like the tile now because it's whiter than the cabs--what color are the cabinets going to be?

I think I am going to paint them amazing gray by sherwin williams. Thanks for the comments!

Hopefully it just comes together. im going to try to tile a back splash instead of the wall panel i was considering.