Was in Canaan playing golf yesterday then went to Sirianni's in Davis afterward for dinner. Damn, that may just be the best pizza I've ever eaten (not a huge fan of pizza), make sure to stop there for dinner at some point. Another great place to check out is Blackwater Brewing Company just down the street toward Thomas from Sirianni's. Great microbrews, good food. I've heard the Purple Fiddle in Thomas is a great place but never been there. Have also heard rave reviews about Mountain State Brewery in Thomas.
As for where to stay . . . I don't have a clue. I'd probly try to find a B&B or something of the sort around Thomas, Davis, or over in Canaan. You may be onto something with the Inn. Maybe try the lodge at BW Falls, or the lodge at Canaan. Only problem with the one at Canaan is the bar doesn't open until 5. I'm not sure there's a bar at BW Falls at all, though (not sure either way). FYI: Canaan and BW Falls is only around 10 or 12 miles apart, and it's an easy drive.
If you've never played golf at Canaan, do so. WIDE OPEN fairways and a long course. I like it. For a much tougher course, one that will show you how damn good you can putt....or not, hit up the Fisher Mountain course between Franklin and Brandywine. Probably an hour drive from Canaan, but well worth the trip. And, I think it's only like $38 for 18 and a cart, plus they give you a free sleeve of balls. Personally, I'd rather they keep the balls and drop the price some more, but whatever, still not a bad price.