This will be a great kitchen with your upgrades! I love the idea of herringbone white subway tiles, and I would suggest keeping them on the smaller side. Since you have 'short' cabinets, maybe consider running them all the way to the ceiling, instead of making everything look confined to the small space between counter and cabinets. That might help unify the space. I'd also go darker with the hardware (bronze) or use a satin stainless; maybe more modern cup pulls or longer pulls.

Marcia,

I'm having trouble picturing your idea of the subway tiles 'running all the way to the ceiling'. You mean on the cabinet edges and then all the way to the top where the cabinets cut off?

Yes that is my favorite herringbone tile. Carry it all the way up the smallish wall next to your coffee make and up over the tops of the cabinets in that 'dead' space between the cabinets and the ceiling. It will visually unify the space, since ideally your cabinets should go all the way to the ceiling with a crown molding, etc. Carrying the tile all the way up there is a way to cheat it...and that tile is so beautiful, it's like art!!

Could also add a drywall 'soffit' above the cabinets so there is no gaping space there, and then tile the soffit in your herringbone.

I'm going to see if I can fill that void with IKEA cabinets.

If I continue with a herringbone white rectangular tiles, should it be matte or glossy?

So I decided to go regular subway because herringbone would look weird with big tiles. As for installation, would you continue to the corner or is it acceptable to end on the main wall and not wrap the corner?

Oops wrong image.

It's ok to not wrap. I think it'll look really nice.

Good idea on not wrapping. We added a little bit on the side and I think we made it work!

what size are the tiles?