I rode the entire length of the canal 2 years ago and I've been thinking about how I could do a shorter trip since I enjoyed it so much. (I'm from NJ as well so I get the distance/logistics and I'm not into camping)
For sure the western end is prettier and more historic but the eastern end is a nice ride too. There are some nice things to check out on the eastern end as well. Here's what I've been thinking:
I'm going to drive to the Albany train station and park my car there. Then I'll take a train to Utica. Once there I'll ride east for about 10 miles and stay in Herkimer. (Alternately you could stay in Utica and leave from there the following morning but it makes the first day a little long for me.)
Then from Herkimer its about 50 miles to Amsterdam. (About 60 ish if you leave from Utica) There are a couple of hotels to stay at in Amsterdam and places to eat & such.
Next morning - Amsterdam to Albany, about another 50 miles back to the train station where your car is waiting for you.
It's 95% paved east of Utica and follows the Mohawk river and what used to be a rail line which terminated in Jersey City.
Feel like riding an extra day? Take the train to Syracuse, stay the night and start from there...it's about 60 miles to Utica and you'll be following the old Erie canal for a bunch of it.
Hope this helps. I'm hoping to squeeze this one in this summer.