In a smaller bathroom I prefer the tiles confined to the tub. As long as you use a good bathroom (anti - mildew) paint you should be able to clean it fine. The more lines in the space you make the more it will look chopped. What ever you choose is should be the same for the other walls. Another option is bringing the mirror down to the height of the backsplash on the counter or to the counter itself if there is no backsplash.

Hi Jeweb, will you use the red wall again? I would like to show you below pictures for a red wall bathroom with white counter top, wooden mirror flame, or wooden cabinet. Hope they are helpful for you.

It looks nice even if there is no backsplash.