Hi, Vince and Katelyn,
If you have not been to Italy, you should go. I think you can do it for less money than you think if you are careful about your hotel choices. We have been to both, as well as to Prague, and I can tell you that Italy is just so different from anywhere else. Germany is wonderful, and we absolutely loved it--the great weather and beautiful countryside, the incredible history in Berlin, and the overall friendliness of the German people (as well as the Rhine and Mosel wines!). We have been twice and had great experiences both times. Italy's people are wonderfully friendly, the food is fantastic, and like in Germany/Prague you don't need to spend a lot of money to eat well. There is something about Italy that seeps into your blood, though, and you will long to return in ways that are far different than your longing to return to Germany. Italy is like Prague in that there is so much romantic beauty in the architecture and the lifestyle. Italians have a passion for life that is evident in every aspect of their culture. Renaissance art. Rolling beautiful Tuscan hillsides. Venetian canals. Roman ruins. The lakes of the north. I honestly have loved every country I have visited, but there is a warmth to Italy that I have found in no other place. It calls to you.
One more thing--I don't know what you mean by 3-star experience. We have only stayed in RS-type hotels and B&Bs, and we always have an ensuite bath and almost always have had a/c. If it is safe, clean, well-located and recommended, then that's good enough. We save our money for entrance fees, museums, restaurants, transit, and those odd things you do on trips that make the whole experience memorable--mostly food-related, now that I think about it. Somewhere RS says something about the more money you spend, the further you distance yourself from the country you have come so far to see. I truly believe that and don't worry about fluffy towels or American breakfasts.
Enjoy your travels, wherever you go...I'm sure I don't need to tell you that you and your wife are making memories for life. :)
Debbie