Kinda hard to tell from the pics: Are those bullnose tile along the top? I would probably tile to the ceiling, but if you're using bullnose that are the same size as the tile, I would keep the grout lines the same, unlike what you have on the left side.

Do you have bullnose corners? If not, that's another reason to tile to the ceiling.

No the tiles are not bullnose tiles and the ceiling is not real even. Thanks for the prompt reply.
Scott