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Where to go in Newfoundland?

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We are planning a 10-day trip in Newfoundland this summer. Our Airmiles are paying for our flight tickets (yay!), but we had to cut down our original 16-day itinerary to respect our budget.
So here is our dilemma: We can either fly into GANDER, then spend 4 days in Twillingate (we would be there during the Fish and Folk Festival), 2 or 3 days near Springdale and 2 or 3 days near Terra Nova Park, fly back from Gander.
OR, we can fly into Deer Lake, spend 4 days in Lark's Harbour, then the remaining days near Belle Bay to hike in Gros Morne.
We want to experience small town hospitality, do quite a lot of moderate hiking, and some boat tours. We are moderately fit in our early 40s.
Any help would be much appreciated.

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