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South Iceland Itinerary Advice

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First off, thanks for your help.

My husband and I are traveling to Iceland for a week at the end of August. Itinerary is the following:

Day 1: Arrive, Drive to Reykajvik
Day 2-3: Drive the Southern Coast
Day 4: Drive back east/north by way of Golden Circle, stay in Borgarnes
Day 5-6: Sanefellsnes
Day 7: Drive back to airport, by way of Blue Lagoon

I am struggling to figure out where to stay on the Southern Coast. Should we say both nights in Vik, leaving the option for a day trip out to Jokulsarlon/Skaftafell? Should we make Day 1 a longer drive and stay in the Jokulsarlon area, then head back to Vik, leaving us closer to the Golden Circle? Or not even bother to try and drive that far out, and just stay in the Hella/Vik area. Confusing myself with all the options, so any advice is seriously appreciated.

Thanks!

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