My wife and I just got back from 10 glorious days in Mittenwald. If you enjoy hiking in an indescribably beautiful mountain setting, then look no further. The charming town is surrounded by hiking trails catering to all levels of ability and endurance. The little town itself has a wealth of restaurants, bakeries, etc. If you want nightlife, then this isn't your destination. It's quiet and restful. In my opinion it is vastly superior to Garmisch. The weather cooperated with us and we only suffered a couple of half-days when it gently rained. We used the rainy days to make some day trips which included Innsbruck, Austria (less than an hour away, Vipetino, Italy (a bit more than an hour away), Appenzell, Switzerland (a couple of hours away) and Liechenstein (a bit more than two hours). As you can see, Mittenwald's location makes it a perfect jumping off place for the scenic wonders of the region. Short of fire, flood, financial ruin or famine, we'll be going back. And, thanks to this forum I was able to glean several ideas for sites to see and things to eat in the region.
All the best,
Dave