This just looks ugly, plain and simple. A keen eye will be able to tell that it is an un-professional renovation or a poor build. Possibly lowering the potential re-sale value. If you receive a quote from another renovator and they have not made an allowance for new cornice and painting, they are probable just going to tile up to the existing cornice.
Most bathroom renovators will say it looks fine to tile up-to the cornice, just so they can give you a lower quote, not have to worry about replacing the cornice and re-painting (which saves them 3 days).
We at Dream Bathrooms would rather do it as part of our cost to get the bathroom looking as good as it can. We just wouldn’t put our name to that kind of workmanship.