To further throw my own kitchen under the bus, here is the soffit I am referring to.
This example shows how treating the space as one unit by painting it and adding a variety of moldings can create a greater visual impact.
Here is another example with a simpler trim detail.
Here is a great example of cabinets that are recessed with the soffit extending past the line of the cabinets. The molding detail blends it all perfectly.
In this example, I'm not sure whether there is a soffit or if the molding was added to eliminate the potentially awkward gap that would exist without the molding, but either way bravo!
So what do you think? Hide the soffit or embrace it?