I'd tile everything to the ceiling.

I would do the shelves only in the bar area. But if you are set on having them around the range also, I would either line one up (just 1 shelf) perfectly with your hood and stop there, or go all the way up. The lowest shelves will probably get in your way while cooking, and they will block the light from your hood. The bar area doesn't need tile for a functional reason. Leaving some areas for just paint/textured wallpaper/whatever allows a little change in the future...everything tiled keeps the kitchen looking exactly the same until you are ready to retile.

Lucky, I was initially thinking of not tiling the bar wall at all, especially since it's kind of separated from the main work area of the kitchen. Then I started second guessing myself. Still going back and forth...you make some good points, thanks!

Also, I'm not necessarily set on the shelves by the range. It was a last minute add on that I wasn't entirely sure about.

I did a nice wall sconce on my bar wall, no shelves. I have 2 open shelves in my kitchen, and I would do it again. They are light and airy, and allow for decorations...again, being able to change the look of the kitchen is important to me ;)

Follow up question...

My husband prefers to have the tile on the bar wall. I initially planned on no tile on that wall. His concern is it will not look balanced if we have backsplash tile on the opposite wall (where the refrigerator is). If we don't tile the bar wall, would it make sense/look ok to also not tile the refrigerator wall?