If you do, in fact, "Want to see the entire Island" in 10 days then you'll really need to keep moving as you cannot see the whole thing from a central place. Choose maybe 3 areas such as, say Kuta (I wouldn't waste the time personally), Ubud (I like Penestanen), north coast. Hiring a taxi is the best way to see the most area and your accommodation can make arrangements whether you rent a house or stay in hotels. If you really you want to cover as much ground as possible I'd stay in hotels and keep moving.

My preference when I'm in Bali is to stay in 1 place, a house in the paddies, and move as little as possible.

I'd say stay in two different places. You can see many different areas of the island, but don't have the illusion that you will "be able to see all that Bali has to offer: the lakes and the temples around them, beaches, rice fields and any spots with great natural beauty." Part of what you have to do to experience some of what Bali has to offer is to slow down and be in the here and now. Driving all over the island won't get you that. My first visit to Bali was two weeks and we toured every other day, and saw some of each major areas. I'd say stay in/near Ubud for half of your time and choose a beach area, I like Sanur. The two beach areas I'd avoid are Kuta (lots of drunk adolescents) and Nusa Dua (for people who don't really want to be in Indonesia).

Hire a car and driver. Do your research (get a good guidebook) and decide particular areas you want to see. A good driver can also take you to villages that are having temple celebrations, a must-see experience, IMO. And don't spend all of your time on the road. Savor the places you choose to visit, and save some for next trip.

I agree with Kathie. We used a guide-driver last year, Putu, and will use him again this Dec. He is quite good and not too gabby but his English is excellent. He could do the entire touring and really getto know what you like and do not like by just telling him. Just say you want just a little of the touristy stuff but mostly off the beaten path. He charges about $550,000 or ~$65/day but I am sure you can get him for less even if you only if you use him for 6-8 of the days and hang at your hotel most of the other days. You can locate a number of very nice hotels for $200-$225 such as the Kominika Resort on Monkey Forest Road not the old one in-town which is very nice and lovely to pass a day or two at and go out for dinner by taxi ($5).
Hope this helps.

I've decided to skip Kuta as per Mme Pedru's and Kathie's advice; it doesn't seem like it's worth flying half way around the world to visit.

Now I'm thinking three days in Sanur, then spend at around four or five days in the Ubud area, from which I would do a couple of day trips.

The Komaneka resort looks fantastic though, unfortunately, it's sold out during my dates, but thankfully there are comparable resorts in the area within the same rate range.

Do you think I should spend three days or so on the North coast of Bali? it seems to be one of the less explored parts of the island and I cant help but wonder whether I'd miss out if I don't visit that area.

Thanks so much guys for all your input!

I haven't been to the north coast but it seems to be favored by those who go for extended visits, is possibly too far off the beaten path and isn't easy to get to. I have been to the Amed area on the east coast and can't say I recommend it. But for 10 days why not just do your coast thing then settle in and around Ubud, as much as you can settle for so short a visit.

I don't know if it is worth spending three days on the norther coast. Friends who have done it have not enjoyed that part of the island as much as other parts. Obviously, there are individual differences. If it were me - and it isn't - I'd divide my time between Sanur and the Ubud area. Not moving hotels again gives you more time to savor.

What are the dates of your trip? Holidays and busy travel periods can strongly impact availability.

For ten days I would agreee -- three places maximum, some beach, some Ubud town, some more rural area north of Ubud.

The northwest and northeast coasts offer some fairly good diving and snorkling, but otherwise I'd concentrate on the southern tip for beach culture and Ubud for culture-culture.

My beach preference would be Seminyak, a miles long, wide sandy bigwave beach with glorious sunsets and lots of activity. It's great for long walks and within walking distance to many many restaurants, shops, spas. There are quite a few moderately priced places to stay, but prices vary (as they do all over Bali) by month.

I'd recommend The Colony which is a small, friendly, stylish place near Petitenget temple and beach. Petitenget is an important seatemple and there are ceremonies on the beach most every day.

After that you might spend a few days in the town the of Ubud and a few days in a more remote area, but still inland, like Munduk. Alam Sari is charming and very lowkey and offers a lot of culture and nature activities.

Kuta is a place you drive through though you will hasve tons of traffic. It has little personality but lots of trinket shops with what seemed like higher prices than inland except for Ubad proper where the prices for bertter souviners were high as well.