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Euro rail pass or individual rail tickets or renting car

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We are planning for a trip with following itinerary:

(Dec. 20 - 8th Jan)

Frankfurt - 2 days
Amsterdam -2 days
Paris and near by cities - 7 days
Barcelona and near by cities - 7 days

What would be better:

a) We buy the Euro rail pass for ~$450 and rely on it for complete travel

b) Book the Euro rail tickets for major travels between countries and take 2-5 day passes locally.

c) book flights for major travels between countries and and take 2-5 day passes locally.

d) Rent car in the country and drive through. [ are Indian driving licenses valid ? ]

Is travelling through train preferable as we'll be able to see the cities/green areas in between? or is it better to save time and take flights and spend the same nearby the major cities.

Also, Can someone please help us in deciding the areas nearby Frankfurt, Amsterdam, paris and barcelona which we must visit.

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