According to grodenhiATgmailDOTcom :

1.) The easiest would be if I can simply leave the tile up and simply
cover it (guess I'd have to use and adhesive?). All the tile is in
excellent shape (no cracks or lose tiles). Is this possible? Or
would doing it this way be a big hack?

2.) If removing the tile is the only way to go how big a job is this?
This tile has likely been up since the 50's. Could we pull it all
without having to redo all the wall board behind it (remembering it
will simply be covered with wainscoting).

3.) For behind the stove and refrigerator there's floor to ceiling
tile, do they make wainscoting in say a 6 foot height?

It sounds as if you want to use T&G wainscotting, rather than panels.

T&G wainscotting comes in a variety of forms. Some precut to
"standard" lengths (which I think is 34" and 40"), others as long
pieces you cut to length. The stuff I've installed came in bundles
(from HD) as 8' pieces. I prepainted, then cut to the desired length
(32" in my case, so I could get three pieces per 8' length - had
6" of room due to the baseboard - the wainscotting is actually
closer to 35" high installed).

I'd not install over the ceramic.

Some craftsmen prefer to install wainscotting (not just panel type)
over plywood - there are FHB articles on this.

How wavy the wall is a consideration in whether you use plywood.

Once you rip off the drywall, installing 1/2" plywood is easy.

In the installation I've done from scratch, I installed over drywall.
I ran a PL200 bead on the back of the T&G then airnailed top and bottom
(where it'd be hidden by trim). It ain't going anywhere.

Presuming the backing is drywall - to remove it, cut a horizontal line
where you wish to preserve the upper section, smash holes, and rip
the drywall off with a prybar. It's messy, but not difficult. Watch
Holmes on Homes for a demonstration ;-)
--
Chris Lewis,

Age and Treachery will Triumph over Youth and Skill
It's not just anyone who gets a Starship Cruiser class named after them.