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Flying to Munich for Oktoberfest; other Europe destinations?

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My question relates to my planned trip to Munich for Oktoberfest this coming September.

We (myself and 6 others, all in our mid to late 20s) fly directly into Munich, and have booked two nights to enjoy the festival. However, we want to explore other areas for the rest of the trip (10 days total), taking in account that the final night will again be in Munich since we fly out of there. So, that leaves us with 7 nights for other cities.

Initially we were thinking about seeing Krakow, however there is no direct train there and we would have to go through Prague. I enjoy Prague, but have been there before and don't feel the urge to return. Additionally, don't know if we'd need 7 nights in Krakow.

Our other thought was Budapest, but we know nothing about it and don't know if it is good for 7 days, either. We considered it (along with Krakow) because neither are on the Euro and thus would keep the trip more affordable.

We wanted your advice on other possibilities. Renting a car is not out of the question. Northern Italy? Salzburg? Vienna? France? Other interesting parts of Germany? Have been to Nuremburg, have been to Hamburg, and have been to Berlin. Really enjoyed them but would prefer to go places I haven't been. What would be semi affordable, after the inflated costs in Munich during the festival?

Thanks in advance for any advice. I really appreciate it!

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