The majority of the population in Madeira is based around the capital, Funchal, for work. Tourism is a big employer.
Most holidaymakers stay in the capital Funchal and take trips from there. Based in Funchal you would have good amenities such as Cafes and restaurants. Read about central Funchal and the things you can do.
There are a good number of tourist attractions in Funchal so that you can enjoy a break in the capital without going elsewhere, but that would be a pity because the island is so very rich in natural beauty outside the city.
Flowers are simply stunning in Madeira and one of the best buys you can make to take home. It's not that flowers are necessarily any less expensive in Madeira than back home but that it is not possible to find the same species. Buy an exotic plant that you can treasure for many years to come.