There are many small towns and villages that would fit with what you're looking for.
I'll give you some info on Jackson and the the surrounding area.
Here's some info you might find handy for your trip in the Jackson - N. Conway area.
If you like small b&b's I would recommed the Carter Notch Inn located on Carter Notch Rd owned by Dick and Sally from England. They are fantastic hosts and if you check the reviews, you can see for yourself. If they are booked try Whitney's which was just refurbished and has great comfy rooms. Don is the owner.
For more than a century, visitors have been “strolling the mile,” a mile-long village loop around Jackson. The “Village Mile” is one of nine walks and hikes outlined in a handy guide published by the Jackson Resort Association.
The Snowflake Inn is a newer inn in the town center (8 years old). Every room has a jacuzzi and fireplace. I think the room comes with an in room massage. The owner makes cookies/pastries for the guests.
The Inn at Thorn Hill is another nice place. They have a great restaurant and wine list and an in house spa. I have never seen the rooms but the original inn burnt down several years back and was rebuilt so it is also newer. It is slightly up the hill from the village (maybe 1/8 of a mile). They have gotten tons of awards (check out their website).
The Wentworth (www.thewentworth.com) is also a good choice. Lots of Europeans stay here. The owners Ellie & Fritz are from Europe (Ireland & Switzerland). They have some really great rooms (as pictured on the website) and some dated rooms so make sure you ask for the ones on the website. They are across the street from the Snowflake. They have a bar and a piano player on Fri/Sat nights. The restaurant is very good too..
The Lodge at Jackson Village is also a great choice . We also met the owners at an open house. They were very nice. The rooms are all very cute.
Eagle Mountain House and Christmas Farm Inn are two places you should take a look at..
As far as eating - lots of great places right in Jackson Village that you can walk to from any of the hotels I have mentioned:
Shannon Door Pub - Irish food, excellent pizzas and have Irish music on Fri/Sat -
J-Town Deli - great place for picking up groceries, good lunch sandwiches/picnic food, breakfast is okay, it is a great place to sit on Sunday with a newspaper and meet some of the locals.
Thompson House Eatery - mid to upscale dining - great food especially their salads.
Wildcat Tavern - fun on Tuesday nights, its an open Mike nite. They have a ok dining establishment and a pub. Under new ownership.
I have already mentioned the Wentworth & Inn at Thorn Hill - both are fine dining.
The Red Fox Pub - casual, affordable and really huge Sunday brunch. They have a kid's room where families sit and kids can run around and do what they want - play with toys, watch movies, etc. Located on rt 16 near the covered bridge.
It's also called the honeymoon bridge. Take a walk on it and you'll see lots of carved initials and names from years ago.
Yesterdays - awesome breakfast!!
Outside of Jackson try:
Horsefeathers in North Conway - has been around for years, great place, great food - casual dining but serve some unique foods. .
For a great Sunday Brunch (a bit expensive but well worth the price - need reservations) stop by the White Mountain Hotel in North Conway (off of West Side Road at Hales Location).
Also check out Mae Kelly's Cottage Restaurant North Conway - good food (Irish) - the owners are very nice. Lots of locals go here on Friday evenings
to have a few drinks and listen to the band.
For an Italian meal check out Bellini's in North Conway.
There is also good meals at Delaney's Hole in the Wall, North Conway (they serve everything but have great sushi). Fantastic peanut butter pie home made.
Try the Moat Mtn Pub for good food and home brewed beer.
The 1785 Inn (North Conway) is very upscale & expensive but the food was great.
The Lobster Trap is good if you are looking for seafood (casual dining on Westside Road in North Conway).
Hope this helps with your search.