So one crucial thing for Banos: Bring your rain gear!
Next thing: Enjoy!
At night a great thing to do is take the Cheva bus. It goes up into the mountains at 7 p.m. (3 US$). You can sit up on the roof, enjoy some cool music and on a lucky day you can see some glowing on the volcano.
In the morning you should go to one of the hot baths which Banos is actually named after (2 US$ for gringos, no entry for pets, free entry for travlpigs). The mineral packed water has about 40 degree Celsius and give you ultimate relaxation. You can also go there at night and you will sleep oh so well afterwards.
Another nice thing is walking the San Francisco bridge. If you spend more time you can go horseback riding, hiking, whitewater rafting or you can as well just hang around and enjoy the great mixture of locals and Gringos in one of the dafes. If you want to study Banos also has many Spanish schools.
Summary: Banos is a perfect spot, much quieter and safer than Quito. It is an absolute must go. Just make sure that you bring some extra dollars since the town is more expensive than Quito.
Take care and toodaloo,