just to add a few more things.
If you go to Knossos then go also in the museum. as all the findings are there so what the point just to see the site without its findings.
In Ierapetra if you go early enough take the little boat and cross over to Chrisi island. small one with nothing in particular just for swimming a sun bathing.
In Vai the same as Chrisi but in case you like windserfing continue on that road and go to Palekastro. one of the organised areas for such sports.
for the taxi around 30 euro i would say even tho i cant be sure as i dont have prices for there