I went to school over the hill from San Jose...in Santa Cruz. A 20 minute drive when there's no traffic. 1+ hours during rush hour. Still....worth the drive...great beach town, and great boardwalk. Really cool outdoor mall, too....totally 60's feel to it with street performers, etc. Also, you could make the 1.5 hour drive to the Monterey Peninsula (Carmel, Pebble Beach, Monterey). You could go out to 17 mile drive and watch the otters.... or to the aquarium there....one of the best in the world.
My absolute favorite spot on the planet is just a mile south of Carmel on Hwy 1: a state park called Point Lobos State preserve. Hands-down the most drop-dead gorgeous place you've ever seen....It's like Hawaii with cypress trees...whales within 200 yards of the shore (seasonal, of course)...otters everywhere...beautiful coves and hiking trails...trust me....
I lived in Santa Cruz for 6 years and Carmel for 7...great places to visit.
If you're looking for more info...let me know.
Here's a Pt. Lobos pic from their official www site: