We took this cablecar to hike from Mannlichen to Kleine Schidegg in August 2013. The view from the top is amazing and IMO among the best of anywhere in the Bernese Oberland. On a clear day, the hike to KS is among the best I've ever done - about 3-4 miles, relatively flat, wonderful views.
If you just do one hike in the area, this is a great one. If you plan on doing more, I would still recommend starting with this one, and then just picking out other ones from the standard hiking brochure available throughout town (including in the information office at the foot of the cable car). The brochure has distances (in time) for about 60 different hikes, each of which is accessible by cable cars or trains in the area.
When hiking, be aware of when the last run of the day is for the cable cars. This one closed at 5:30pm. You may just want to plan to end near a train station and plan your return trip that way (trains typically run much later).
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