Thanks to everyone so far for their suggestions and honest opinions. I will try to address a lot of the concerns so far by giving a little background on me.
I have been to Europe once when I was a teenager with my high school French teacher. It was with a tour group and we did London, Normandy, Paris, Nice, Monaco, and Florence.
I have been researching this trip for a year and a half now. I have watched every RS episode for all of the locations we are interested in. I have read Europe Through the Back Door and own an array of RS books including Best of Europe, Normandy, Bavaria, Cinque Terre, Italy, and Rome. This trip has been an obsession for me!
I first want to address the concern that my kids will hate me after this trip. I am pretty sure otherwise. If you are not a parent of 3 very active boys (and I don't mean active as in behavior but involved in lots of extra-curriculars), you may not understand that our normal day is always crazy rushing from one thing to another. We very rarely sleep in on a weekend due to their sports events, etc. so we are quite primed for a packed itinerary!
I always am planning a trip and they are always challenging itineraries to some. Last year we did 2.5 weeks in California doing San Francisco, Monterey, Big Sur/PCH, Solvang, Disneyland, Sequoia and Kings Canyon NPs, and Yosemite NP. You would probably laugh at that itinerary as well but we had a blast. We go to Disney World yearly and are the people that get up at 6am to beat the crowds - we stay from open to close (no nap breaks). I understand that not everyone can handle our itineraries but we do pretty well and all 3 of my boys are still talking to me. I constantly have people asking me for my trip itineraries so I must be doing something right.
I failed to mention that we are planning on starting the trip in mid-July. I really wanted to start in June but it is not working out with team camps for my oldest's high school basketball team. We would be flying out of Raleigh-Durham, NC airport. I have been following flights for a while and Milan has been the cheapest to get there and the open jaw starting in London was very little more. Cost is a huge factor for us with 5 tickets! A few of you asked about flying out of Milan after Murren but if you look at a map, Milan is not much further than Zurich or Geneva from the OB and the cost savings is huge!
Some suggested we cut out Murren but with my oldest being 15 then, he can still travel for free with the Swiss Family Pass. If we wait until another time (if there IS another time), he will be considered an adult so going places like Jungfrau, Schilthorn, etc. would be cost prohibitive for us.
We do not plan to eat at a lot of expensive sit-down restaurants. We will try doing some picnics and eating street food like the outdoor biergartens.
Laundry is a concern but that has been a factor in some of the hotels we have picked. A lot of them have washers on-site.
Many of you have varying opinions on Rome and Venice and I've seen that in all that I have read. I guess we're all going to have some varying opinions - I have been to neither. We are Catholic so going to the Rome/Vatican is a bit of a pilgrimage for us. I had a better itinerary before but I had to move some things to make sure that we will be in Rome on a Wednesday to see the Pope. He is gone on vacation in August so I had to get there before that.
My biggest concern in planning has been having that odd number of 5 people. It is a pain in hotels and transportation just like it is here in the US. I am still glad I had that 3rd child - he is a keeper!
I will post a better itinerary soon to show how I have incorporated travel time, etc. into my plan. I may still want to shift some days around. Many mentioned cutting some days in the CT but I had planned on some downtime as a "vacation from our vacation" which many would agree that we need!!!
Thanks for all of the help and tips so far and keep them coming...