I'd go for Italy.
Has great cities, lovely beaches, unbeatable scenery, great history, great food, short flight time and reasonably priced (but not cheap).
Top choice would probably be Sorrento. Explore the Amalfi Coast, visit Capri (have a night of amazing luxury there if you can afford it!), go to Pompeii. Fabulous.
Or somewhere around Lake Garda. Can have a day trip to Venice (although it is quite far), get up in the mountains, lovely beaches.
Greece is also lovely and a bit cheaper. Longer flight time, but still completely doable for a week.
My method for holiday booking is as follows:
- think of all the places that I want to go that are likely to be doable (time and money wise) for the time I have.
-google image all of them and see which two or three or four jump out.
-google each of them/look on tripadvisor to see what they have to offer. Narrow it down to two.
-look on somewhere like Thomson, to see what it would cost for flights/transfers/hotel and what trips they offer from each base.
-look to do it independently for less than it costs for the package. Use their planned trips as a starting point for looking at what's available/doable in the area. Also, use the tripadvisor 'things to do' bit to help with this.
-um and ahh for about two weeks. Panic because I haven't got anything booked yet. Book something. Have a fab time!
-I'm not averse to booking the package if it's the best deal. Have had some wonderful package holidays, which haven't been at all 'packagey', it's more about the destination and which hotel you choose as to whether it feels 'packaged' imo.