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Canal trip??
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For more on marking an answer as the "Best Answer", please visit our FAQ.I've been on a couple of canal cruising holidays and whilst they were very enjoyable, your not going to see much of the country travelling at about 2 - 3 mph, but it depends how long your coming for, the company we went with, about 20 years ago was www.anglowelsh.co.uk/ its worth having a look at their site for a start.
Judging by your reference to "merry England", I'd guess you'd be looking for a traditional postcard image. The lanscape varies widely, but for lovely thatched cottage country you can't beat the Cotswolds. I've just moved from Hampshire in the South and found it to be absoutely lovely, very green and rolling. The Lake District is also beautiful.
However, if you want the really good stuff, you'll need to change country. Nip up North and visit the West coast of Scotland, now that's what I call gorgeous. You can drive from the South coast of England to Loch Lomond in around 8 hours, then take a few days travelling up through some of the most breathtaking scenery on the planet.
Have a look at http://www.viking-afloat.com/canalboat.htm or http://www.canalholidays.co.uk/ or http://www.waterwaysholidays.com/ A selection of site to review before you commit. Most companies will do you a few days rather than binding you to the 3 weeks and have you been to the UK before?
Ask around friends to see if they have any recommendations as there are just too many 'special places' to suggest here. 3 weeks is a good break, so why not add Wales and Scotland to a mini tour? Easy to arrange, and will give you a good taste for a further visit after a few days in some distinct locations.
Canals were built as the industrial links between towns, so quite a few start and end right in town centres - handy for other sights to see. The East of England waterways tend to wind through more rural areas - Norfolk Broads for example, and this probably wont be the merry bit you want - very peaceful, but might not be the tourists first destination on water if you want lots of heritage as well.
Should be a good holiday whatever you do, so enjoy your stay!