I did recess it. Boy oh boy, did the router make one heck of a mess.
Bought one 12x12 marble tile that kinda went witht he color scheme of the kitchen. Even found grout that was harmonious. Routed out the area for tile plus grout, applied thinset, set the tile, then grouted (a bit later) around the edges. It juts up just a bit. Looks ok, but unfortunately, in my haste to hit the road I forgot about taking a picture.
Wasn't all that difficult, though you gotta remember to plan the routing in such a way that the router has a base to stay on (i.e. route methodically from one end to the other rather than randomly). And, the kitchen sink kept getting in the way as I tried to position the router guide I'd made.
I'd also suggest trying a bunch of 6x6 tiles and comparing the look w/one 12x12, etc.