5 nights seems like too much for the Rhine and Moselle. Trier is nice, but I think if you've already seen a bunch of other similar sized cities in Germany, it kind of loses it's sparkle.
If you're basing yourself in Nürnberg, consider combining Coburg on a long daytrip to Bamberg. Coburg has a nice Altstadt, but the star attraction is Veste Coburg, the large castle that overlooks the town. For my money, this is the best castle experience in Germany. I would give it preference over the far-too-touristed Rothenburg odT.
I'm in the minority opinion, but Salzburg didn't blow me away. It's nice, no doubt, but the Altstadt is really small and a lot less colorful than many others in Bavarian and Austria.
If the purpose of your visit to Garmisch is to make the Zugspitze ascent, then a daytrip is reasonable. Don't try to plan this far in advanced, pay attention to the short-term weather forecast and jump on the first day that offers clear conditions. If it's just to see the town... I wouldn't bother. Don't get me wrong, I love the place, but I love it most because it provides easy access to all sorts of amazing Alpine adventures.
Quedlinburg is amazing, but I wouldn't see it as a daytrip from somewhere else. The nearby towns of Goslar and Wernigerode are worth a visit, as is the ascent up Brocken, the highest mountain in the Harz, either by foot or Eisenbahn. Erfurt is worth a look, but skippable if you can't find the time.
A few quick kid-friendly suggestions: If you want to take a break in the middle of your vacation while letting the kids run wild, consider one of these indoor waterparks/thermal resorts: Tropical Islands near Berlin, Kristall Palm Beach near Nürnberg, or the grandest of all, Therme Erding near the Munich airport. Leipzig, which you would likely pass between Dresden and Nürnberg, has one of the best zoos I've seen anywhere. You mentioned Playmobil Park, but depending on the route you take between Munich and the Mittelrhein, you may pass near Legoland Ulm.