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Need advice on Blue Mountain trip

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We (two couples, one in 60s and the other in 70s) will be visiting Sydney next year. As the designated tour guide, I'm trying to figure out the trip to the Blue Mountains. Should we take a day trip with a tour company or should we go by ourselves on the train? Then, if we take the train, should we stay overnight? Without a car, where should we stay?

We are able to do some short hikes and are usually independent travelers, so I'd like for us to arrange our own trip but I'm not sure what to do when we get there. We'll probably buy the Opal Card and the Scenic World ticket. What else do I need to know?

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