You won't get a chance to fully appreciate each of the smaller cities if you're only visiting for a few hours, but perhaps it will give you a chance to figure out where you want to come back to in the future.
That being said, I do think there are a couple you really should allocate more time to. As it's only a 40 minute train ride, I might consider moving Augsburg to a day trip from Munich so you can enjoy more than 2 hours there and give yourself a little extra time in Rothenburg and Ulm.
Along the same lines, there's no way you can do Stuttgart justice in 2 hours; I would consider taking one of the nights you'd spend in Munich and spend it there instead so you can have a full day to see the city.
In general, though, I think the itinerary looks fairly reasonable. A popular trip in Munich if you like beer is a hike up to Kloster Andechs. A journey out to the Chiemsee might also be fun.