Everything sounds great to me. However, in Turkey, busses are the common way to travel. It will take you many hours, probably all day, to get to Cappadocia from Istanbul by bus. There are 2 little towns close by in Cappadocia and we stayed in Neveshir the first time at the Dedeman and in Urgup the second time at a Club Med. There probably are more choices in Neveshir. However, you will have to take into consideration the bus stop locations. You may want to make those arrangements with a travel agency in Istanbul before you leave.
Have a great time. Gretchen