Kyoto-Miyajima-Hiroshima-Osaka Itinerary

I plan to visit Kansai / Chugoku Area late May, and this is my first trip to Japan.

Below is my draft itinerary :

Day 1 KIX Airport to Kyoto (Icoca Haruka?)

Day 1 Kyoto
- Sanjusangendo
- Kiyomizudera Temple
- Lunch
- Philosopher Path
- Heian Shrine

Day 2 Kyoto :
- Nishi Honganji
- Higashi Honganji
- Shoseien Garden
- Nishiki Market
- Imperial Palace
- Manga Museum

Day 3 Kyoto : Arashiyama
- Arashiyama Park
- Tenryuji
- Bamboo Groove
- Jojakkoji
- Gioji
- Lunch @ Saga toriimoto
- Daikakuji
- Otagi Nenbutsuji

Day 4 Miyajima :
- Travelling from Kyoto - Miyajimaguchi (JR sanyo pass) - Miyajima (JR Ferry)
- Itsukushima Shrine
- Hiking to Mt. Misen
- Aquarium
- Overnight @ miyajima ryokan

Day 5 Hiroshima :
- Miyajima - Hiroshima by ferry (JR sanyo pass)
- Peace Park
- Hiroshima Castle
- Shukkeien Garden
- Shopping @ Tokyu Hands
- Overnight @ Hiroshima

Day 6 Osaka / Nara :
- Hirosima - Osaka / Nara (JR sanyo pass)
- Todaiji Temple
- Nara Deer Park
- Kasuga Grand Shrine
- Nara Nagomikan
- Back to osaka : Dotombori

Day 7 Osaka :
- Sumiyoshi Grand Shrine
- Osaka castle
- Universal Studio

Day 8 : Osaka - KIX Airport (Icoca Haruka?)

Question :
1. Is the 4 day JR Sanyo Pass worthed?
2. Any recommendation for Ryokan Stay @ Miyajima? My budget is around USD 100 a night
3. Can I but round trip icoca haruka pass and use it for my first and last days only?
4. Any change recommended for the itinerary?

Thanks in advance.

Wow, unless you love temples, you are going to be a bit templed out i think.
Looks like you have a good itinerary. I could make changes but it would just be swapping one thing for another without (possibly) adding any value. I would however, take out some temples and swap them for other cultural sites that have a bit more variety but that's just me.
I've stayed twice at Ryoso Kawaguchi and was very happy there. Dinner is included and is a decent Kaiseki, they have a bar that adjoins the building and the Ryokan is very central. The rooms are big, the building is quaint and the bath is nice (private if you prefer that sort of thing). In your price bracket I don't think there are any other options for Ryokan on Miyajima.
I would throw in another temple but this time on Miyajima. See the Daishoin temple, it's a bit different to others you will see with lots of hidden away caves, alcoves and stairways. This can also be the start of your trek up to Mt Misen. From memory it was about 1.5hrs on that path. Be prepared to be followed by deer if you have any food out, they are everywhere on the island. They are very placid and are used to people so aren't aggressive.

Thanks for the input..
And yes.. I love temples and castles.. :)

After much reading and searching, this is my final itinerary, still need a few input though :

May 19 : arrive at KIX (08.30 AM) go directly to Hiroshima (sanyo pass day 1)
May 20 : hiroshima - miyajima - hiroshima (sanyo pass day 2)
May 21 : hiroshima - iwakuni - fukuoka (?) (sanyo pass day 3)
May 22 : fukuoka (?) - okayama - kyoto (sanyo pass day 4)
May 23 : kyoto (ginkakuji, kiyomizudera, higashiyama, gion)
May 24 : kyoto (arashiyama, kinkakuji)
May 25 : kyoto (fushimi inari, manga museum, nishiki market)
May 26 : kyoto - hikone - kyoto (kansai wide pass day 1)
May 27 : kyoto - wakayama - kyoto (kansai wide pass day 2)
May 28 : kyoto - nara (kansai wide pass day 3)
May 29 : nara - osaka (kansai wide pass day 4)
May 30 : osaka (kaiyukan, USJ)
May 31 : take off from KIX (11.00 AM)

Is day 4 (may 22) too busy?
Should I skip fukuoka and go directly to okayama (overnight at okayama)?
Where can I bought kaiyukan pass? can I use the pass for all subway line in osaka?

I have JR pass, so miyajima ferry is covered, but from my hostel it's easier to go to miyajimaguchi using hiroden tram. is the JR ferry terminal far from hiroden terminal?

Thanks in advance for any advice.