Beautiful clean modern kitchen! You have a great opportunity to put your personal stamp on the space with a unique backsplash. As you've heard already there are some different approaches. I'd probably place the backsplash up to the wall cabinets and up to the base of the hood. Then continue the backsplash at the same height (18"?) behind the sink. Then place an inspiring colorful picture above the sink to break up the wall. Here's a picture with pendants that aren't too obtrusive. Having multiple levels of lighting at different lumens makes a more inviting feel to the space. I couldn't decipher your flooring, but you may also want to consider adding some nature elements like a type of wood flooring, wood stools, etc. Good luck! If you need software to plan out materials check out our Home Designer software: http://www.homedesignersoftware.com/

I found this photo online, perhaps it will help. In this picture the crown molding on the cabinets flow from the kitchen to the adjoining room. Maintaining continuity with the color and some of the trim detail will make the rooms transition nicely. Don't overlook the details like hardware finish, lighting and plumbing fixtures as these elements can also tie the two styles together. I hope this was helpful.

When you're doing lighting in a kitchen it's a good idea to have good directed light over the main tasks areas, cooking, dishwashing, food prep. You could achieve this with downlights directed at those areas, or track lighting where you can direct/angle each of the lights on the track. Re the pendant over sink area, would need to be at a height that ensures safety - water & electricity, not a good combo. There may be some NZ standards that you can refer to, to get the correct info.

I love three in ones because if one bulb explodes, you've usually got a fair few backups before you have to completely fix the bulb (but that's just the laziness in me coming out). In my opinion, I don't think you need a demisting mirror because that's what the fan is for in the three in one.