For a truly Cretan experience you can stay at the "Olive Press" in Kritsa.
Your host, Mrs. Liesbeth Deturck (a Flemish lawyer who gave up her busy life in Belgium to start a new way of living in this remote village), has plenty of information on hand for hiking in the mountains and of festivals that are being held in the villages around Kritsa.
I have not stayed there myself, but acquaintances of mine who did (a family of five - Euro 70,00 per night for the apartment) were just delighted and full of praise for the house and the landlady.
If you like small villages, mountains, quietness, the smell of nature, this is the place to stay. The rooms and apartment are tastefully decorated and clean to the extreme.
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