Japan in August 2016

I am in the midst of planning my trip to japan later this year.

There are 3 possible plans that I am thinking of:

1) Shin-Osaka
I would get the 7 day JR Pass for this.
If I go, I would plan to visit Kyoto on the 16th for the festivals. Side trips to Nara and perhaps down to Tokushima for the Festival there as well.
We have already been to Nara, Osaka, Miyajima and Kyoto before.

2) Okayama
I would get the 7 day JR Pass for this.
I think Naoshima Island looks interesting. I would plan to travel to Tokushima and Kumamoto for the big festivals there as well.

3) Sapporo
I would take a flight for this.
May be better to avoid the crowds? Looks like there are also festivals going on (though sites are in Japanese) and could take some trips to the surrounding areas.

So my questions are:
Which seems to be the best idea? Are the festivals worth fighting the crowds for? My partner is slightly claustrophobic so we are weighing our options.

is there anywhere else that I should visit?

Will the monster hunter attraction at Universal Studios still be on in August?

You should go to the place that makes you happiest, and only you know that best.
I can give a few observations though. If you go in August, prepare to sweat like a pig. Unless you fly up to Hokkaido - which is a big plus for up there.
That said, the Awa Odori in Tokushima City is a phenomenon, and unless you can easily go to Japan again in August some day in the future, it'd be well worth going to see. Besides, it's pretty much the only reason to ever go to Tokushima City at all.

You keep saying you want to get the 7 day JR Pass, but don't give any info where you are arriving or leaving from Japan. If KIX, getting a JR Pass and staying only in the Kansai area makes no sense at all. And if you want to go to Kumamoto, Peach has a low airfare from Osaka to Fukuoka for as low as 4300 yen one way. That and a JR Northern Kyushu Rail Pass would cost less.
Or, a JR Sanyo Sanin Area Pass+JR Northern Kyushu Rail Pass comes up less than the full JR Pass too if you skip Tokushima.

Some other places you might consider going to are Miyama, north of Kyoto, Himeji, or go see one often overlooked and beautiful original castle, Hikone.
https://www.youtube.com/watch?v=dCp5HCc6rYQ
For Okayama, the star attraction is Korakuen, one of Japan's Top 3 historical gardens.
https://www.youtube.com/watch?v=5zAI3_N7NEM
And while you may have seen Miyajima, Iwakuni is just past it and worth a visit for it's iconic bridge and castle.
https://www.youtube.com/watch?v=0COOZXi66mM
Plus not to be missed in the area is Akiyoshido which is a 300 million year old limestone cave 1km deep with an underground river and giant caverns.
https://www.youtube.com/watch?v=DqIKC9S8TFQ
As for Universal Studios, why would you fly to Japan to see some item of Americana? If you go to Japan, go see Japan.

Thank you for your reply, the trip is planned in August but I haven't settled on the exact dates yet, I will probably be planning around the festivals.

Thank you for the advice, I tried to look up Tokushima but theres completely no accommodation left during the entire festival period. I think we will go to the daimonji in Kyoto and stay in the kansai region instead. Thank you for your recommendations for places to visit and the passes, I will take look at them too :)

I thought the USS there had special stuff like Attack on Titans, Evangelion and Monster Hunter which seemed Japan specific but it may be gone by the time I go there. I'm from Asia, but I think we won't go to USS anyway.

Thank you for your advice!