We have 5 days for hiking, and are torn between Murren area and the Dolomites. We are a little freaked out by the seemingly high cost of all the lifts around Murren. Is this a factor? And which would you recommend of the two areas?
The 2 areas are very different. But both are incredibly beautiful. I have been to both. B. oberland is more expensive IMO however w/ very careful planning you can control costs by not eating out while you are there. I managed to stay under $100 per day when 2 traveling by staying at Lauterbrunnen hostel (great value w/ pvt rooms and share kitchen) and a B&B in Murren. FYI we were in B. Oberland there in July and weather changed so very fast, so fast we stayed in doors half day and got drenched and very cold 2 other half days we were there 5 days total.
You don't say when you are going but if it is mid-June-Sept you can save a lot of money by hut-to-hut hiking in either place. The Dolomites would probably be less expensive and give you more options. There are guidebooks describing both.
Both areas offer fantastic hiking, but the terrain and landscape are very different. BO offers massive snowy peaks nag glaciers above verdant meadows dotted with cows. The Dolomites are pale, jagged tower formations lofting above forests and meadows where you are as likely to encounter goats or Haflinger horses as cows. German is spoken in both places but I find it easier to understand in the Dolomites. Lodging may be less in the Dolomites but I haven't done a strict cost comparison. Overnight in a CAI hut is around 40 to 45 euros per person for non-members, including dinner and breakfast. I've not looked at the price of Swiss huts. If it is the cost of lifts you are concerned about , they have those in the Dolomites too. But you can do a lot of hiking without ever taking a lift. From Muerren ,for example, you can hike to the Rotstockhutte and back, to The Kilchbalm below Gimmelwald, to Tanzbodli, and to Oberhornsee, all without using a lift.
Like others said, both are fantastic. But, I think the B-O is the most beautiful place I've ever been, so I recommend that. I also agree you don't NEED to take lifts to hike. I rarely do. If you are a hiker here in the US, you won't need to; I think it's the people that aren't really hikers, but are more regular sightseers that want to walk a bit on a trail, that use lifts/funiculars. (The bonus here is that the trails not accessed by lifts, like the one Lola described above, are much quieter than those that are). You do of course pay for the gondola up to Murren when you first arrive with your luggage, but I don't remember that being very expensive. Another way to keep costs down in Switzerland--get an apartment and cook in.
Both areas are brilliant, but I prefer the BO. You can compare expenses of various forms of transportation, rooms and meals by carefully reading current RS's guides for the respective areas.
I have been to (and hiked in) both, and the Berner Oberland would be my first choice. As a previous poster mentioned: The mountains there are jagged impressive peaks and the valley area is so beautiful. Also, I love the hiking in the area. I enjoyed my 3 days of hiking in the Dolomites and would like to go back sometime. But I don't day dream and "yearn to go back" for them like I do the Lauterbrunnen valley. With planning, you can minimize your use of the lifts. (You will need to take a lift to Murren, but you can do a lot of hiking from there. Then have one day where you come down and see the other side of the valley- Wengen, Kleine Schedegg, etc) Switzerland is pricey, but worth it.
PS: My two favorite hikes there: Obersteinberg (you can get there from Murren without using the lifts) Schyngie Platte to First (Expensive, you have to take a train to Schyngie Platte, then hike to First (stopping at Faulhourn for a meal on one of the most beautiful decks in Switzerland) Then you ride from First down to Grindelwald and take the train back to where you started) Both these hikes are rated "difficult", but they are worth the effort.