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Here is a quick look at some of the other activities in Banos.
ATV Rentals
You'll see ATV (all terrain vehicle) rentals around town. It is relatively inexpensive if you want to ride the streets r the trails nearby.
Horseback Riding
You'll have to travel up the volcano to Luna Runtun for this. There are lessons and tours at the resort there, and great views of Banos down below you.
Dancing and Drinking
The best bars are mostly located on Alvaro Street. My wife and I thought that the best music (but not necessarily for dancing), was at the Jack Rock Cafe. The best light show and dancing floor was at Son Cubano. The Mocambo seemed to be one of the most popular bars.
Chess
This may interest only a few readers, but I love to play chess. Banos has some strong players. Roberto, owner of the Jack Rock Cafe, usually has a chess board out anytime it isn't too busy. If you like timed games, ask for Manolo at the artisan's market in the center of town. He and Renato (who also has an artisans stall there) are a couple of the best players in town. Manolo teaches the kids, who are also pretty good by the time they are ten-years old.

Bicycle Rentals
It is cheap to rent a bicycle, and if you are a regular rider, it can be a great way to visit communities like Rio Verde on your own schedule. There are also some trails in the hills around town, but I suspect they are too steep for most of us.
The Cathedral
It is worth taking a look inside the Cathedral in Banos. You'll find classic architecture, history and art. It is generally open to the public, although there are often processions of one sort or another coming and going.
Walking Around
One of our favorite activities in Banos is simply walking around. You could cover most of the streets of the town in an afternoon. It is a great way to get to know where different restaurants and stores are.
Art
There are a couple galleries in Banos. One has beautiful paintings by Ecuadorian artists, as well as fantastic carvings and sculptures. You'll have to find this one on your own (I was so busy looking at the art that I didn't write down the name or address).
Volcano Tours
As shown by the lack of addresses and more detailed information, we may have been enjoying ourselves too much to take good notes. Fortunately, Banos is small and it is easy to get information. Tell any taxi driver or hotel owner what you want to do or what you are looking for and if he can't help you, he'll find someone who can.