Two days outside Kyoto or Tokyo

Help, we, a family of 5, all adults, are visiting Japan in March 2023. We are going to Tokyo, Hakone to stay in a ryokan, Kyoto for 3 three days plus day trips to Himeji and Nara. We have two more days and would like to be in a less urban setting, ideally a charming, more traditional Japanese town with a lovely inn or ryokan that is roughly under two hours from either Tokyo or Kyoto. It would be nice to relax, hike and/or explore someplace typical/traditional. We've done tons of Google searches but haven't found anyplace. We're traveling by train but could rent a car. We'd really appreciate suggestions. Thanks in advance.

Personally I would turn your Nara day trip into a Hikone day trip (a little castle town on Lake Biwa close to Kyoto) and then spend at least one full night in Nara.

Nara is fantastic, and much nicer if you stay overnight. We have stayed there a few weeks over the years and still arent tired of it. There are nice restaurants in town, and early morning walks a brilliant, out amongst the deer. We are back for 4 nights in Feb.

If you want to treat yourself, I'd recommend the Nara Hotel, but make sure you stay in the old wing as the new wing doesnt have the charm, and smells like ashtrays. Breakfast there is amazing.

If you stay a second night there are towns nearby including Uji that are easy to get to by train.

Thanks for your thoughts. I'm going to look into Hikone. We are planning on going to Nara as a day trip so this could work. I've also considered stopping along the Tokyo to Kyoto route and spending a night in the Kiso Valley as the post towns look charming. We'd rent a car from Tokyo to Kyoto if we did this. Thoughts? Many thanks

Nara is definitely a good idea. Other possibilities:
Yamatoyagi
Omi Hachiman(or some other town on Lake Biwa)
Izu peninsula, eg Shuzenji (definitely NOT Atami
Chichibu
Karuizawa

Check them out. They are all different with different vibes and activities you can do.

Oooh yeah, some great suggestions there too. Karuizawa is another of our favorites, and I really liked the Chichibu area (cant wait to have the miso tonkatsu again).

For the post towns, maybe if you dont expect much they will be more interesting, as there isnt so much to do there. That said, we are spending a few nights at Kiso Fukushima in early March 2023, the idea is to trot backward and forward along the train line, eg do the Tsumago - Magome walk again, and visit Narai.

If you dont mind a decent train journey, Takayama is a lot of fun, but that would be probably 3 hours from Kyoto.

If it's not the depths of winter - then I found Asuka and Sakurai near Kyoto as a fantastic driving location with plenty to do and great walks. Lots of places cost most - but there are also lots of free places as well....

Have you thought about Nikko?

Depends on your interests really. Close to Kyoto...

Nagahama, Hikone, Otsu, Tsuruga, Obama, Amanohashidate, Toyooka, Kinosaki-Onsen, Tsuyama. These are all rural or small town like cities. All offering something in the way of sightseeing. And only a few are actually touristy.