Murree is fine if you are coming from Islamabad or nearby places and visiting for a few hours, plus there is no real scenic beauty in murree.
If you need a longer stay I would suggest places like Gilgit or Kashmir, although they are a bit far away (I think that the journey is the most enjoyable part of the trip
). During my recent visit to Kashmir I found the people to be really nice and hospitable, even the little children were really nice. Even the price of food and stuff like biscuits etc was the same as their price in Lahore.