What are your favorite small(ish) towns? 

Say ~10K-200K pop in any country, places that punch well above their weight 

A couple of mine:

San Sebastián, Spain 
Tofino, British Columbia

Where else?

another incredible place is Pai, Thailand. About an hour north of Chiang Mai in the mountains. Little village full of hippies and beautiful scenery.

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Thailand in general seemed like a lovely place. I was only visiting and wish I could have stayed longer. People were so friendly and the food is incredible of course.

I was an exchange student living in Chiang Mai. Had visited Pai:)