Lardos: Away from the hustle and bustle of Pefkos/Lindos.
Lovely main square where you can buy a coffee in the morning and sit there and watch the crazy Greek drivers doing their deliveries. Free entertainment!

Another vote for Lardos - we have stayed there a few times over the last 15 years - relatively quiet with some good tavernas on the square. Also very cheap to get a taxi in the evening to Pefkos to increase the variety of meals/entertainment. We have stayed in one of the White Houses (villas with pools) several times, which are a short walk from the square.

And another one for Lardos. Just love sitting with a coffee or ouzo watching the world go by. Bliss!