Do I need a Japan Rail Pass??

Hi,

Unfortunately, without more itinerary a 7 day JR Pass would not pay off for you. However, if you added for example a day trip to Nikko from Tokyo, the pass world be cost effective. If you don't want to do that, you could save some money with a JR Kansai Wide Area Pass to cover your trip to Kinosaki and in the Kansai area.
For your night in Osaka, don't miss Dotonbori, plus the night views from the Umeda Sky Bldg, and Abeno Harukas Bldg are stunning.

You're right! I think I mihht get that pass! How long is it valid for? I might do a day trip from Kyoto to Nara

Hi,
The info is all on their website, if you are referring to the JR Kansai Wide Area Pass.
Nara is often neglected by some tourists, which is a shame. Missing the Todaiji Great Buddha in Nara is like going to India and skipping the Taj Mahal. Nara Park has a lot of great places, such as Kasuga Shrine, Kofukuji Temple, and feeding the many deer in the area. A few other great places missed out even by those who go to Nara though are the Isuien and Yoshikien Gardens. They are gorgeous and not crowded at all.

You're awesome and so very very helpful! Thanks so much!! I'm looking forward to my trip!!

You're most welcome. For Kinosaki you might look into a Yumepa Ticket which allows you unlimted access to all the main hot spring places there.
It seems though you have very limited time in Kyoto. In Kyoto you could spend weeks there and not see everything. The three best sights though are the Kinkakuji Temple, Kiyomizudera Temple, and Fushimi Inari Shrine. And the Otagi Nenbutsuji is one of the most humorous and whimsical places you could visit in Japan - well worth visiting.
In addition, there are other numerous great places you can visit in the area. Okayama is not far and it is famous for its castle, plus Korakuen, one of Japan's Top 3, and also the Handayama Garden. If you'd like to get off the beaten trail for a while, the half day hike up to Konpirasan in Kotohira is stunning. Going to Takamatsu is also nice - it has one of Japan's finest gardens also, called Ritsurin.
Hiroshima also has a number of good places. Miyajima is the most famous, and aside from Hiroshima itself, Onomichi with its temple tour and Kosanji Temple is spectacular. Just beyond Miyajima also lies Iwakuni with its historical bridge and castle on top of the mountain. Hagi Castle was actually delightful, and the preserved samurai district and Mori related temples a rarity. One of the very best is the Akiyoshi Limestone Cave, a 300 million year old wonder with huge caverns and underground river running through it.

All in all, a lot more to explore and enjoy.