I would highly recommend going to Paxos (just 45 minuted by ferry from Corfu) if you are looking for a relaxing holiday. Island is only 10km by 4km with 3 lovely villages plus a number of small local areas.
Even though it is small the amount of activities is abundant and you won't get bored, but you can also find some peace and quiet!
Bay View Villas is in Gaios - the bigger of the 3 towns. Its under a 5 minute walk into the centre through olive trees (which is lit up at night).
See their website: http://www.agni.gr/Travel/Paxos/Bay_View_Villas/index.asp
We stayed in the apartment called Mimosa B which is at the bottom and you feel like you are in the olive trees. It had a separate bedroom, kitchen area, big lounge and a balcony. Even had aircon. Our friends stayed in Bougainvillea A which was slightly smaller and a studio layout but both apartments were decorated beautifully and this apartment had the most beautiful views of the bay and a lovely balcony.
We hired scooters to get around the island and even hired a speedboat which we took around the island and one day went across to anti paxos.
The one side of the island is full of beaches (pebbled) and the other is an array of cliffs. Would recommend going to the sunset bar on the west coast in the evenings - grear food and beautiful sunset! Called Erimitis.
Another great find was the cliffs by the lighthouse at the top of the island near Lakka. Walk 10 minutes around them - lovely experience.
The people running the villas were very helpful and friendly. They arranged all our transfers which went very smoothly but it is possible to walk from the ferry up to the villa although it is a steep hill.
There was a cleaner every day except sunday which was great - never had to wash dishes!
There are a couple of fresh fish markets in the town which I highly recommend (only available to buy fish in the mornings from about 9am.
Restaurants were all good - I couldn't actually pick one out specially...
Enjoy your stay!