Two friends and I spend a wonderful Easter weekend on the island of Naxos a few years ago. It is an enchanting island that is not overly touristy. Its a good place for some R&R as well as hiking (if you're so inclined).
The hotel we stayed at was one of the best budget accommodations I've ever experienced - Hotel Grotta, run by a brother and sister. The rooms are spacious and have TV, phone, nice bathrooms (although I don't know about wireless). Some have veranda views of the ocean. The highlight of the experience - hands down - is the traditional Greek breakfast. Buffet style yogurt, honey, cheese, bread, meats, honey cake, juice . . . its included in the room price, and you will be well fortified for your activities later in the day! We paid ~ US$45 a night for a triple room in 2001. And they gave us a bottle of wine!
Dimitrios was kind enough to loan my friends and I a well-worn copy of Walking Tours of Naxos. This slim guide has short to medium-length walks to see such sites as ancient Kouros and temples. You can see one of the most iconic ancient ruins as you sail into the harbor of Naxos town - the freestanding gate that was part of a temple to Apollo that was never finished.
We spent 3 days on Naxos and were able to visit some of the smaller towns (Ano Sagri, another town at the North end of the island - Apollonas, maybe?).