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Rent a car from Zurich to milan or take a train. 3 days Return journey.

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Dear all,
This is my first trip to Switzerland. I am 35 years old and my wife 30 years old. We both love travelling and driving as well. We normally go for a visit to a country every year in june july. We love to explore the place like locals, trying to stay away from touristy destinations. We are planning for a 6 day trip as follows

2nd July
Arrival at zurich airport from dubai
Take rent a car. Off to Zermatt.
Night stay in Zermatt

3rd July
Stay in Zermatt.

4th July
Early Morning I leave for Milan.
Want to do shopping in Seraville.
Overnight in Milan.

5th July
Leave for zurich. Return the car in zurich.
Buy swiss pass. Come to Interlaken
Overnight in Interlaken

6th July, 7th July
Interlaken and surrounding areas

8th July
2pm flight from Zurich to dubai

My areas of concern.
1. Both me and wife love to drive, will it be worthwhile to take rent a car for travelling from zurich to Milan or shall we take a train ?
2. I will be taking a compact sedan. Is oit ok or shall I take a bigger car as I heard that smaller is better to drive in Europe.
3. Any scenic route to be suggested?


Many thanks in advance for your valuable suggestions.

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