I wouldn't recommend Banos right now (August 2006)since Tungurahua volcano is blowing up and the town sits under the volcano. Sure would be an exciting trip if you like active volcanos. Here's a nice view of where the town sits and the volcano above it.
http://www.destination360.com/south-...ua-volcano.php
I would recommend you visit Otavalo its a beauiful colonial town
http://www.destination360.com/south-...own-square.php
If you going to the Galapagos Islands fly out of Cuenca which is one of the larger cities near the coast. There's alot to do there and also nearby you can ride the Devils Nose Train
http://www.destination360.com/south-...nose-train.php