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/

How about butcher block instead? IKEA and the big box stores sell it for countertops, the price is decent, and you won't have as many issues with buckling, water damage, or what to do with the edge as you would with the ply. If the edges of the ply get wet, or if any seam around a sink gets wet, the plywood will "blow" and you will have to replace it all, anyway.

Lighting - pendants over the servery bench should be another feature that complements your chosen kitchen surfaces. So whilst I love the copper pendants in picture 1.. They could work depending on the rest of your decor and would be a highlight in a neutral white/timber kitchen = Good! If you choose copper you would complement it with a couple of copper bench top items. These are beautiful! (I collect copper because I love it, my kitchen pendants are silver, I renovated to sell in the next 3-5 years) You will see a picture starting to form in your mind and there is nothing wrong with making a statement with your lighting. I found that when I wasn't sure I would get a very strong sense of what was right and what was wrong for a space, then common sense or passion would determine the outcome! Here are another couple that might work, look her on Houzz under lighting, search pendants, then have fun looking!Timber tones with black or white to complement your cabinets... or Statement white pendants for a bit of quirky fun! Your personality can be reflected in your lighting and accessories creating that point of difference from the predictable white on timber look. Plus don't forget the power of greenery to punctuate the theme!

Having been brought up in a Lockwood home I can appreciate your love of the wood. I notice you have a light green bench and that would blend nicely with some similar colours in the room. I would consider having your cupboard doors replaced or sprayed to compliment the bench or visa versa you can have your bench updated with a new finish to modernise it. Perhaps you could just price out the cost of a new bench and leave the rest of the kitchen as it is. The odd bit around the dishwasher looks weird and that might be able to be fixed by curving a new bench into a small breakfast bar type set up. If there is room I would also reposition the microwave to the right of the cook top and use the existing space for a display or a lovely pot plant.