ronb wroteA key question is where you want to stay. You mention diving - there are great sites in north-west Bali (Menjangan Island) and north-east Bali (Tulamben). Then you mention culture - and Ubud could be a good choice perhaps, but not on the coast. Then when you narrow down the general area, transport is an issue. If you will drive or ride motor-cycles yourselves then you can be a few Km out of your selected town, but if you depend on hiring drivers then it is better to be central and only hire drivers on the days you really need them. Nobody can answer these questions for you. You need to come and case the joint.
Great comments, folks. Really appreciate it.
Ronb, you are so right that we need to answer the transport question by being there. I doubt that my wife will want to drive a scooter, even if I do.
We like to dive, but we won't be diving every day. We will want "things" to do, maybe those things are a lot like we do as retired couple in San Francisco, we won't really know until we get there and live there for a while (not just a three week vacation). In any case I do think we will want to have a degree of civilization around us. So we have been thinking of Ubud (can we get a nice villa in Ubud for $2k USD?). I wonder how "out of the way" a place like Candidasa or Karangasem will feel. Maybe Sanur is a good choice, but I don't think the beach per se is a particular need for us.
Thanks again!
- Bill & Emily