So here are two pictures showing my two options: I need to decide right now because they are making the template for the vanity top.

or

NEITHER! You should not even be thinking of templating a top for this vanity with the unresolved flooring issue that will require you to remove the vanity.

And that tile as a backsplash will be difficult to clean. I would choose the same material as the vanity top when it comes actual time to template. The vanity top should project no more than 1/2" from the edge of the vanity, and the matching top should be equal in size to it.

holly,
does all your advice come with a valium prescription? 'cause you've literally reduced me to tears.

I can't comment re: counter size/projection itself, but will say that the backsplash should be the width of the counter.

Re what another poster wrote: And that tile as a backsplash will be difficult to clean.

We used split-face mosaic tile in our hall bathroom. We don't have kids, but that is the bathroom DH uses. I don't go in there to wipe up after him constantly (I clean the bathrooms weekly, and in-between, will wipe down the sink, or clean the soap dish if it's scummy, as needed). I sealed the backsplash tile well, and after almost two years of using the bathroom, the tile looks as good as it did the day it was installed. I wipe it down with wet damp or wet microfiber cloth after I've cleaned the sink or tub. Once in a while I'll spray the backsplash with the same cleaner I use on the tub surround (7th Generation Disinfecting Bathroom cleaner spray), and then wipe dry. No problem keeping it clean.