Thank you so much for your feedback, I've changed the Itinerary per everyone's comments. We are going to divide our 10 days between Madrid & Seville based on your knowledge.
From Madrid we are thinking a day trip to Toledo.
From Seville we are thinking a day trip to Cordoba (or is an overnight really required) and a daytrip to Jerez to do sherry tasting.
Lastly, we could fly out from Malaga (based on someone's great suggestion). If that is the case it appears from Google maps that Grenada is only about 1.5 hours from the airport. If that is true, then is it too much to try to go to Granada, do you think, even for a day and night and get up early to drive to the Malaga airport from there?
The other option would be to do an overnight in Cordoba, but then go back to Madrid and fly out from there. Either way there does not appear to be direct flights to Toronto at that time so we are doing a connecting anyway, and it seemed perhaps more advantageous to see Granada.
If you were choosing between Granada and Cordoba, which one would you choose?
Thank you again.