I loved Fussen but not Neushweinstein castle
Neushweinstein?
It's hard to take a recommendation from someone who doesn't even know the name of the place they are critiquing.
I personally liked Neuschwanstein. No, it's not a real castle, but it is a beautiful edifice and an insight into the life of a romantic, eccentric king.
People visit a lot of fortified palaces that look like castles - Reichsburg (Cochem), "Burg" Hohenzollern, etc. I've visited a lot of "real" castles that weren't as interesting inside as Neuschwanstein.
BTW, look into Pfronten. It's on the same rail line as Reutte, but a prettier town. There are buses all day to Füssen and if you stay in Pfronten, you'll get a pass for the bus.
Another good place to stay if you like hiking would be Oberstdorf. Oberstdorf is Germany 2nd ski area, after Garmisch-Partenkirchen. The German Ski Team trains there.
Right next to Oberstdorf is the beautiful Austrian alpine valley of Kleinwalsertal. Kleinwalsertal has a lot of hiking trains. It's a ski area in the winter, and in the summer they run the lifts so you can take a lift up and hike down.
Unfortunately, it over 2 hours by train via Kaufbeuren to Füssen. There used to be a direct bus to Füssen, but it seems to have been discontinued.