Feedback on 2-week Spain Itinerary?

If you want to avoid concentrations of tourists in August, you need to find different locations to visit.

For the cities you chose, I feel the balance is fine, but if it was my trip I’d stay in Toledo for 2 nights and take a night from Madrid.

In Toledo, consider staying at the Parador just outside of town. Without a car you’d need to take a taxi into town, but it is very relaxing and one can’t get a better view of the city.

Thanks jaimeelsabio for your feedback. Just to clarify, I understand there will be tourists in all the hot spots, I guess I was just figuring there'd be more tourists elsewhere as the heat seems to scare some folks away? But maybe I'm wrong...

The places you want to visit are busy year round, but especially late May through mid September. They are still very enjoyable.

Throw your extra day to Cordoba, which is a major omission from your itinerary. Although I loved spending multiple nights there, many people see Cordoba as a day trip from Seville, and that's a great deal better than not seeing it at all. The trip from Seville takes less than an hour by train, though there's a bit of a walk from the train station to the historic center. Do some research on Cordoba. There's more to see there than just the Mezquita.

I like the idea of the extra night in Toledo, too, but you need to think about how much time you'll be spending in Madrid's art museums before you reduce the length of your stay there, especially since you plan to take the day trip to Segovia.

Andalucia is going to be miserably hot and the area around Madrid probably not all that much better. Be sure the lodgings you choose have very good air conditioning. If they're listed on booking.com, those are good reviews to check out before you book directly with the hotel. I'd also prioritize a central location so you can easily take a break back in your air-conditioned room if you need to. You'll encounter extended mid-day closures at many locations in that part of Spain.

Edited to add: I feel I must say that I wouldn't go to that part of Spain in the summer. I'd head up to the north coast, between San Sebastian and Santiago de Compostela. Yes, the small historic center of San Sebastian is annoyingly touristy (I prefer Bilbao), but I'd rather deal with crowds in pleasant conditions than crowds in an oven. The heat in the south is highly likely to be extremely uncomfortable. It would affect my interest in food.

I agree that Cordoba is worth using the extra night for - even as a day trip from Sevilla. If your wife doesn't like packing up and moving, I'd day trip to Toledo. Be sure to book in advance so you can get the trains you want but at least you'll have one full day there. There isn't much point in one night - considering the time spent checking in and out of accommodation and luggage etc - either add an extra night for a total of two (but I don't see where you could take it from), or a day trip could be fine.

Sounds good overall.

Personally, I would Toledo as a day trip and do an overnight in Cordoba instead. It could be convenient for train arrangements too as a hub between Sevilla and Granada. Toledo is great for the cathedral and the old medieval city nature of it, but I would rather have dinner in Madrid personally. Same with Segovia, unless you're really in love with the traditional Spanish cuisine, I like the options in Madrid better.

Food recs:

Cordoba: Don't eat dinner in the tourist zone, I found the restaurant better values and more interesting closer to the Plaza de las Tendillas area.
Sevilla: Bodeguita Romero, Vinoteca Lama La Uva, Lobo López, Naked and Famous Cocktail Bar, Robles Laredo and El Favorito for just having a relaxing beer in the tourist area, braXas.
Madrid: Bardero, Bar Tribuetxe, La Caníbal, Casa Revuelta, Ástor gastro-place, Bar La Campana, Bravo Wine Bar, La Fisna Wine Bar, Baldoria, La Maruca Velazquez.

This is all fine tuning and depends on your interests and balancing your situation.

If it were me, I would probably do like jamie suggested and take a night from Madrid and give it to Toledo (for 2 nights). I like art but don’t love it so I don’t need to see all the museums.

Then I would add your extra night to Seville for a Cordoba day trip OR stop for one night in Cordoba.

But you could equally see Toledo as a day trip from Madrid during your 5 nights and give 2 nights to Cordoba.

Just tossing out options, as there’s no wrong choice.