Hi, Dave. I was just in Bavaria three months ago and took Paul's advice and stayed in Mittenwald. I loved it! It's very pretty, scenic and interesting and just the right size for me -- nice for strolling, lots of shops and restaurants, not too crowded. GaP was nice, but I thought it was too big and spread out. It's all a matter of personal taste.
We went to the Zugspitze and to the Ludwig castles and also to Hall in Austria. They were all pretty easy drives. It's about an hour and a half to Neuschwanstein, but the countryside is very pretty so it's a pleasant drive. We went one way on the way - passed by Oberamergau, but did not stop -- and came back through Austria.
We were going to stay in a B&B recommended by Paul that sounded great, but I happened across another place that had a lot more space for a little more money -- Gastehaus Edlhuber. We loved it! We had an apartment with large LR/DR, large bedroom, small kitchen, small balcony with view of Alps and new bathroom. The breakfast was excellent, and the owner was very friendly and helpful (knew enough English to communicate). I highly recommend it.