Great Christmas destination-- thoughts?

I've heard that Berlin in winter is just too cold to be a reasonable holiday destination, even if you think you're used to harsh weather.

For Christmas itself you should forget Germany. The country shuts down between 24.12 and 27.12. NYE in Berlin however is great. Search for "Silvester Berlin" on Youtube to get an idea.
And since you live in the Czech Republic: if possible do a day trip (or weekend) to Seiffen in the Ore mountains, the heart of German Christmas. Seiffen, just 5km away from the Czech border, is a village with nothing but Christmas shops:
Christmas 365 Days A Year--Seiffen, Germany
Nutcracker collector's trip to German town feeds her need for more
Longing for light
Germany's Christmas toy towns

I was going to suggest Prague but see you are based in the Czech Republic, so can I suggest my home city of Edinburgh, lots going on at that time of year and EasyJet do cheap flight from Prague, mind you accommodation can be on the more expensive side.
http://www.edinburghschristmas.com/

Would you consider the Dolomites? We had a perfectly lovely time there last holiday. Stayed in a half-pension resort, hiked all over, loved it!

I've never been there at Christmas (heck, I've barely been there at all), but for some reason from your list, Rome sounds like it might be a nice spot at Christmas . . . and certainly milder than Prague, so it has that going for it as well. That also puts to mind Naples with its incredible presepi (nativity scenes), that might be something to consider too.

Krakow's main square should be lovely and festive for the holidays - check out Trip Advisor reviews. Since it's a religious and (very) Catholic country, you'll definitely get the spirit of the season.

Paris is on my list of places to spend Christmas time at. Looking into it for 2017 or 2018.

Munich => Venice => Rome
Berlin => Krakow => Budapest
Copenhagen => Amsterdam => Strasbourg

To be clear, I would only like to stay in one location (and maybe the countryside immediately surrounding it) and am looking for a place that can definitely provide some kind of festive Christmas "character".
No location is too cold :)
@Martin, thank you for your thoughtful suggestion and links! I will definitely look into those.
@Unclegus, Edinburgh was definitely not on my Christmas radar but will check out that link!
@Laurel, would definitely consider the Dolomites. What was the town and/or pension you stayed at?

I'd say Venice is probably at the top of my list right now (although slightly concerned about acqua alta possibilities) but I am curious if anyone else has had positive (or negative) experiences at any of the destinations above? Keep it coming-- your thoughts and suggestions are so appreciated :)

We stayed at Hotel Albion for our Dolomiti Christmas. Not cheap but a very nice mutual gift! There are lots of lodging options in Ortisei and it is a very lovely village with lots of activities at Christmas.

Venezia will be nice as well. We have been there in early December 3 times and it is quite festive with beautiful lights and few tourists.

Dolomites are very nice. When Laurel refers to a "half-pension" resort, that means it includes breakfast and dinner every day. These are very good value with big buffet breakfasts and multi-course dinners at night with excellent food. She has mentioned Ortisei in other posts and I have been there just before Christmas. The Christmas decorations are sumptuous and the entire central portion is basically a Christmas Market. If you have a day for a trip, the Verona Christmas market is quite nice, as are the markets in Bolzano and Trento.
I was also in Venice in February with daily "acqua-alta". Nothing to be scared of and is really interesting. You can stick to the temporary walkways in the low areas, or buy a pair of plastic overboots that the street vendors sell when ever the water comes in. They cost about 10 euros and then you can go splashing down the street like a regular Venetian.