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Travel Through Northern Italy

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Starting in Venice, plan a 10-day vacation in Northern Italy. Ideally, we are thinking 2-3 days in Venice, a night in Verona, and ultimately going on to the Dolomites. We are already committed to staying in a home (through a home-exchange) in Falcade, Italy. So that will be our base for at least five nights. We are traveling at the beginning of August -- we will be three adults and two kids ages 10 and 12. I would like 1) recommendations for hotels in Venice --nice, quaint, quiet, but not-over-the-top pricey (no Cipriani's) hotel rec (some restaurant recommendations would be great as well!) 2) where should we rent our car --should we take a train to Verona or some other town and then rent a car, or rent the car starting in Venice (after touring Venice, of course). 2) Where to go after Venice? 3) good recommendations for side trips from Falcade.

A few things to bear in mind:

--we will be flying in and out of Venice
--we are interested in a mix of activities both cultural and outdoors
--we are traveling with two kids who are great travelers, but will not be thrilled looking at too many cathedrals and frescoes. Want to hit the "not to be missed" cultural highlights, but otherwise would like it to be a fairly active itinerary --thinking hiking and biking in the Dolomites, a day trip or overnight in Cortina D'Ampezzo.
--we love good food -- not over-the-top fancy, but we are a very food-focused group

Thank you so much in advance for any advice!!

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