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Travelling within Spain

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Hello there,
I have a 2 week holiday planning in Spain. I will be spending approx. 5 days in Madrid, 4 in Seville and 5 in Barcelona. We will be sightseeing everyday and there will be these daytrips:
from Madrid - Toledo and Segovia.
from Seville - Granada (maybe a stayover)
from Barcelona - Cadaques and maybe Sitges.
Would renting(and driving) a mid size automatic be convenient and cheaper? Or would you recommend using public transport. How comfortable/reliable/convenient is public transport in Spain? I do have my 1 year old with me.
What are some good places to rent a car. I do have this link for one:
http://www.booking-centre-online.com/
Your help is much appreciated.
Thanks in advance.

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