There's a lot more to the Ubud area than Ubud itself - the surrounding villages all specialise in a craft such as wood carving in Mas or silver smithing in Celuk and although these villages have also become more touristy over the years they are still very interesting and a million miles from anything we experience in Europe or the US. There are the ubiquitous motor bikes everywhere but that is 'progress' you can still walk 10 minutes north of the Palace and come to rice paddies where the local workers toil all day. Last time we stayed in a 3/4 star which only cost us something like $80 a day and we had the most peaceful stay ever looking out onto the rice paddies - only problem the bed was rock hard!

We went to see the Wayang Kulit (shadow puppets) show at Oka Kartini one night and another night we went to see the Legong dance performed in a village compound. Although there are cultural activities and performances in hotel's and restaurants elsewhere on the island I've found the performances in Ubud to be more authentic.

If you stay in Ubud you're better placed to go and see the various rice fields http://www.google.co.uk/search?q=ric...&bih=672&dpr=2 I found the weaving in Sideman very interesting - http://iweb.tntech.edu/cventura/ikat.htm - this may be possible to fit in on the day you transfer to your next hotel.