Do the whole wall up to the upper cabinetry. Glass is a very pretty choice.

What is planned for the corner to the left of the base cabinets?

Pending knowing that, I would use a backsplash only between the base & upper cabinets.

Hard surfaces, like tile, make for a noisier environment. And, I like to hang decor on the walls and change it up every so often. Having tile everywhere can make that more difficult.

We are planning to have an L-shape bench there so that the laundry room can double as a mudroom.

What do you think about from base cabinet to the upper cabinet and then the rest of the wall on the right?

I wouldn't. To me, there isn't a logical reason for it to extend beyond the sink area. One other smallish reason not to go from floor to ceiling is the problem often posted about here where the ceiling isn't level but the tile lines are level. Then becomes a problem of how to disguise the disparity.

Plus, I like having some painted to bring some color into the room--and that is easy to change with just more paint in a different color if/ when you want to change things up a bit & do it inexpensively.