If you arrive in Germany on December 21, keep in mind that the Christmas Markets (with a few exceptions like Prague) close down about 2pm on Christmas eve. After that time you will find the Bavarian and Tyrolian areas pretty quiet for the next few days.

When you mention villages, attractions and winter sports I think you would enjoy the area around Garmish. Mittenwald (the violin maker's village) and Seefeld (ski area)are just down the road toward Innsbruck from Garmish. You are also close to Schlos Linderhof, Oberammergau, Ettal Monastery and Fussen (Neuschwanstein).