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Lake Champlain, Burlington, VT over Labor Day Weekend

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I asked my husband if he had a weekend away where he would want to go, and he said Lake Champlain. Now I'm on a mission, we have Labor Day Weekend with no kids and I want to go away. I've searched and read many threads on Burlington and Lake Champlain, but there aren't many recent ones. I also checked TripAdvisor.com looking for accomodations. Also have been several websites by googling both.
1) I've made a tentative reservation at the Holiday Inn Express in S. Burlington, but am thinking I should probably pay the extra to stay at the Wyndham overlooking the Lake, any thoughts?
2) Any breakfast/lunch/dinner recommendations?
3) We are 40 and 45 years old, and enjoy pubs and live music, any suggestions for night life for our age group?
4) I saw something about Champlain Valley Fair, if anyone has been, what is it all about and would you recommend?
5) Things to do? (boat rentals, lake cruises, jet ski rentals?) I've already seen the Shelburne Farm, and I'm not into Vermont Teddy Bears, so those would not be on our list. Are there other pretty towns in the area/scenic drives to explore, or that we shouldn't miss? I read something about the islands of Champlain - is they worth a trip?
6) Ausable Chasm - is it worth the trip over? Has anyone done the rafting or tubing there, and if so, is the water terribly cold to do the tubes?
Sorry to ramble, but if anyone has any ideas or help to offer, I'd appreciate the input!

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