I've found a guesthouse outside of Margarites, Kouriton House [http://www.kouritonhouse.gr/], that might be a good base for visiting Ancient Eleftherna and Arkadi. Actually, the place looks stunning, and while a bit outside my budget, I can't believe the prices are so low. Lonely Planet gives a highly favourable review on its website, but I’ve not been able to fine any traveller reviews. The (relatively) low price and lack of reviews make me a bit leery. You know what they say about things that are too good to be true. Is anyone familiar with Kouriton House?
And what about Margarites in general? I've read mixed reviews about Margarites describing it as an authentic off-the-beaten-track crafts village or a tourist trap. Maybe it's one of these places that is tourist trap central in the morning when the busses come through but reverts back to a real village once they leave. Has anyone been there and would you recommend it?