1) I'm the same as another poster that recommended VIE. I go to Vienna about 2 times a year and always find it great...I never get bored as I love just walking the city or drinking coffee in cafes. We stay at the Do&Co right in the center of the 1st district-which is a fab boutique hotel.

I'm not interested in museums or music and such but there are lots of great cafes and places to eat and I found places like Hofburg, Schoenbrunn, etc interesting since I've developed a taste for history since college. If you do chose VIE feel free to PM me for any recs for food or cafes.

Also Vienna is extremely proud of music because of Mozart...although Mozart wasn't originally from Vienna. Vienna is a proud little place and very competitive but other than skiers Austria can't claim much fame hence why Mozart is pushed (I just had this debate with my Czech friend the other day and lost my "Austria has some famous well known people" debate)

3) Depending on your interests Salzburg is about 2.5-3 hours by train from Vienna and could make a nice day trip. Kitzbuehl is beautiful in the summer (boring though unless you're sporty) but probably wouldn't make sense for a day trip.

6) I'm not sure about pricing in Krakow, but in Vienna there are lots of places that are reasonably priced still with great quality. Meals are about 10-20eur per person depending on where you go, etc. You definitely won't be disappointed with the food if you're a foodie. I would highly recommend the goulash at Plachutta (the one located near the Stefansdom) and my favorite melange in the city is at the Do&Co's Onyx bar.

So to sum up...if it were me I'd do Budapest (no more than 3 days), Prague (no less than 3-4 days) and then Vienna.