No do not put above cabinets. I'd do a simple subway tile, make it understated so your items on the counter are your focal point.

I don't think you should put the back splash above the cabinets. As far as stuff on top of them you could maybe pick some more uniform things to place up there or even go with plants. Perhaps philodendrons, they're very easy to care for and look nice.

What type of backsplash? I really jus want a practical accent, nothing that will make area appear smaller. Thank you

I wouldn't put the backsplash to the ceiling as mentioned but the bigger question is how are you going to end the backsplash on the open end of the counter? Be sure to think that through so you have a finished edge and symmetry where needed.

Yes!!!! I originally wanted to end it at last cabinet, but that wall unit xtends up and down beyond the cabinet. How can the clean edge be created?

Your picture doesn't quite show either of the ends clearly or the other side of the kitchen (if there will be backsplash there too). You'll want one plan for the whole room. I'd post some more photos for the pros to chime in and also, there are tons of threads on this to consider as well.