Can recommend Rethymnon having been there.
The question is what do you wish to do.
Walking - There is a company there that organises daily treks - If you are reasonably active then much better than lying on the beach. Details here -
http://www.happywalker.com
The little train trips are worthwhile.
Eating out - There are plenty of places and the area around the harbour in the old town should satisfy most.
Our plans to go back are on hold as youngest is thinking of moving to San Fransisco so we will be going there in future but if his plans fall through we shall go back.
fwh