I was last month in Kandersteg (after 4 days in Zermatt) and loved the area. The mountains are not as dramatic as those in Zermatt, but there are some beautiful areas for walking: Oeschinensee, Gasterntall, Sunnbuel....
Stayed in Bernerhof hotel and I have to say it´s maybe the best hotel in this category I have stayed in.
If you want to visit the Gastern Valley there is a special bus departing from the train station, but you have to book it previouly (better the day before)
Kandersteg pictures are in the first two pages, after that there are the ones from Zermatt