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Cute places between Karlsruhe and Burg Eltz?

My family is going to be traveling north from Zurich to Dusseldorf between July 21st and 23rd. On the 22nd, we plan to stay over at some midway point, probably between Karlsruhe and Burg Eltz (west of Koblenz). Does anybody have suggestions for towns you'd recommend we choose to stop overnight? Specific hotel or B&B ideas (we're open to either) are also welcome. There will be three of us: myself, my wife, and our 11 year old daughter. A small town with an air of history about it would be wonderful! Thanks in advance.

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I'd suggest any of the west-bank Rhine villages you see on this map.
www.welterbe-mittelrheintal.de/index.php?id=274&L=3 (copy and paste) Boppard is the largest town with the best selection of accommodations and restaurants, including some outdoor dining, and some wonderful old buildings near the town square. St. Goar has the best natural scenery and Rheinfels castle right in town. Oberwesel has a wonderful old town wall with towers you can wander. Bacharach has some charming half-timbered buildings. Your family can make the Karlsruhe-Rhine village trip by train, if you wish for a mere 26€ total with the Rheinland-Pfalz DAYPASS. The ticket will get you a 20% discount on a K-D Rhine cruise as well, if that interests you. K-D Cruises