You can certainly do the Dingle Peninsula in a day...it's a pretty full day, but we took our time and stopped to enjoy most everything Rick recommended and a few extra walks along the way. We skipped the Ring of Kerry and were ok with it, as the Dingle Peninsula is so amazing and not too crowded. If you haven't booked a place in Dingle, I'd highly recommend staying at the Greenmount House, the best B&B we stayed at in all of Ireland! We are so bummed they are already booked for our return trip this year.
Day 3: I'd keep open as you have it. If you are like us (arriving on an overnight flight) first thing in the morning you might find yourself much more tired than you think. We arrived to Shannon last year and planned to do the Dingle Peninsula the same day...we basically made it to Dingle from the airport (a few hour drive) had lunch and ended up sleeping for 5-6 hours. We awoke refreshed and were able to check out the town. Luckily we had flexibility in our schedule and were able to do it the next day. You may not feel like doing Bunratty, the Cliffs and getting to Galway all on the first day. If so, you could plan to hit the Cliffs on your way to Dingle and you haven't missed them...(also if the weather is bad on your way North, that would allow for another chance to see them in great weather).