Best way to travel in japan?

Question:

Hey, planning on a 7 day vacation japan this august.
first 2 nights will be spent in tokyo. the other 5 nights will be spent in these places: hiroshima, Osaka/Kyoto, Tokyo and hakone. places are fine and hotels would be easy to book too.

now my question is: what would be the easiest, most flexible and economical way to travel around these places.
our choices are:

1) 3 japan rail passes for around 89,000 yen. but then the extra cost would include lots of taxi trips to/from hotel and sightseeing sights, extra sightseeing tours. the total cost would then come to around 149000 yen

2) rent a car for 5 days with pick up from tokyo shinjuku and drop off at narita. that would come to around 62000 yen (including drop off charge). including toll, parking and misc costs, the total comes to around 142,000 yen. with a smaller car, this goes down to around 125,000.

costs are similar and in my opinion, the car is more flexible, but if i take the car, then i wont be able to experience the bullet train. but the train saves time.

so which one should i go for?

thanks!

Answer:

Train, hands down. You have no idea what you are getting into when you take a car. If the car has a navigation system that would help, but you'll have trouble setting it or find it impossible. Traffic jams, well, I hate traffic.

And you don't have to use a taxi to get to sightseeing spots. I've been all over Kyoto and only took a taxi because I had a friend with me and he was getting a bit worn out. My sister went to Hiroshima to the Peace Memorial and I think a castle and never took a taxi. My cousin went from Osaka to Tokyo to Mt. Fuji to Hakone and back to Osaka and never took a taxi.

Trains, hands down.

EDIT: Station to hotel. Check at the ends of your legs. There are these things called 'feet'. Really, walking is a source of transportation here. If you are in Tokyo, hotel and station go hand in hand. If the hotel has a website, it almost certainly will have a map indicating the nearest station.

As for tours, those aren't my bailiwick. I know you can book them online.