Wow Zorro,
You really know Malaga. I've decided to forego the idea of renting a car from Granada. We'll just take a bus to Malaga and stay put rather than rush around finding another resort town. Malaga sounds more like the easy going pace we need at the end of our itinerary. Besides, it's just for a night and day. I will definitely print out all your suggestions. Thanks everyone for their help. You're sure walking down from the hill of Gibralfaro is safe right?

Thanks also to Matador!