Yamaguchi Lantern festival or Onomichi

Hi,

for schedule reasons I have to choose one either Yamaguchi or Onomichi, what do you think about Yamaguchi Lantern festival? has anyone been there? 6-7 August, and how about Yuda Onsen, is it nice?

Yuda Onsen has a very nice shrine (Yamaguchidai), garden and temple (Rurikoji) near Kami-Yamaguchi Station (so do not use normal Yuda Onsen station). Additional a museum that is okayisch. Only not so good things are the onsen itself :-)