A touring holiday is the only one that makes sense, although you can do it so that you stay in one spot for 3 - 4 days before moving on. You have to have a car in this area, even if you are based in one area for several days.
From Banff, you can cover a reasonably large area with day trips, but you can't reasonably get up to Jasper in a day, so that is a different base for a few days.
While the Rockies are marvelous, and it really depends on what kind of trip you want to do, but I think after 7 - 10 days you will have completely tapped it out (unless you enjoy multi-day wilderness hikes), and so you may enjoy some time in the Alberta prairie and badlands area, or alternatively, head into the Kootenay region in British Columbia for lakes, mountains and hot springs.
Edited: 10:19 pm, December 02, 2012