We visited Madeira in May 2013. I wanted to hike for a few days during a week visit to Portugal. Madeira far exceeded my expectations. It was beautiful, the levada walks were great. The people were friendly. The wild flowers on the first hike were amazing. The food and wine were, of course, terrific. Just a great few days. This is sunrise over Funchal.
Palheiro Village was a good choice although it's outside of the main city and driving it a bit of a challenge. Our villa was very nice, huge, well appointed and had good outdoor space for happy hour!