Am I playing too scared, or is checking down here smart?

Villian was somewhere around 38/9/67 so I figure he could have a wide range of hands esp when the river hits. I feel like I am playing way too timid (I just moved up to .50/1) and I think I am missing out on extra value. I could've also been up against a set. I assume the river check is definitely a faulty move, since I checked behind.

Full Tilt No-Limit Hold'em, $1.00 BB (8 handed) - Full-Tilt Converter Tool from FlopTurnRiver.com

BB ($100)
UTG ($54.95)
UTG+1 ($91.25)
MP1 ($20)
MP2 ($97)
CO ($60.10)
Hero (Button) ($98.50)
SB ($72.40)

Preflop: Hero is Button with 10, 10
UTG calls $1, 4 folds, Hero bets $3, SB calls $2.50, 1 fold, UTG calls $2

Flop: ($10) 3, 5, 8 (3 players)
SB bets $4, UTG calls $4, Hero raises to $26, SB calls $22, 1 fold

Turn: ($66) 4 (2 players)
SB checks, Hero checks

River: ($66) 6 (2 players)
SB checks, Hero checks

Total pot: $66 | Rake: $3

I think you played it very well.

There are way too many hands in the river calling range that you are behind vs the hands that you are ahead of.

God!On the turn,please shove this all day against 3/4 stack donk after the bloated pot.

I'm gonna base my reply not on the board as much as on donkish villain tendencies.
Guys like that think that ANY 2pair + and most overpairs are the nuts and would absolutely check the turn with one of those nut hands but now that it's checked through they WILL bet the river, esp. with these stack sizes. When he checks the river to you, you are good 800% of the time, so shove.

Sorry, didn't take into consideration stack sizes. I like the logic of both of the above posters.

I think that no matter what he has his playing very weird.
So it is difficult to rationalize that much about what he has/will do.
I would check in this situation, even a weird player like this will rarely call on the river with a worse hand than yours. If he was on a flush draw he will fold, and it is not too unlikely that he will fold weaker pairs than yours. What would you get value from?
The pot is already 66 BB and you only have a decent overpair so I would check and be happy to have been given the opportunity.
Like I said, it is very difficult to guess what a player like this have, but I think flush draw or a set are fairly likely.
I think I would have played the hand exactly like you did, except that I would raise more preflop. At least to $4. It is important to raise more when there are limpers, otherwise their odds will be too good, and they will call correctly with a weaker hand.

ahhh what's the range of hands villian is calling with on either the turn or the river.. i cant imagine we would have too much equity if called..

fwiw i like the way the hand was played

and this of course is referring to shoving as suggested previously

wtf, a donk is calling this with top pair, 99, and sometimes lower 1pair hands just because 'he knows you don't have the straight, zomg snapping that bluff'

I think this is a very low risk shove, I mean 80+% of the time if he had a better hand he'd have been shoving himself.