Thanks for your info! I definately want to go to Naoshima, I am interested in modern art and architechture and I love the idea of an island devoted to this.
Perhaps I should take out Takayama altogether, save it for another time (hopefully), and spend more time around Kyoto/Hiroshima/Miyajima.
It would add too much cost to my budget to fly in and out of different cities, the reason I am using Osaka airport is that the flights are a lot cheaper to there than Tokyo. I will have a two week JR pass so the train fares wont make a difference.
Its difficult when you research a place, you find out about all these different and amazing parts to visit, to keep your itinerary simple!