I live in a small town too and like it (about 12,000 people, but maybe double that live just outside city limits). Closer to nature, have 2 beautiful lakes nearby for fishing and camping and any watersports like skiing. Also around here is the trout fishing capitol of the country. This is a tourist area so there is more commercial business than industrial, and anything you want, you can get in town. All fast food places you could want, plenty of good dining also, as well as a few bars, theaters and a couple bowling alleys and pool halls. There is also a branch of the state university here in town as well as a new technical school just a few miles from my house.
Some of the best things about it though are the clean air and being able to see so many stars, the wild animals, and the security/safeness of the area. There are more than enough local people watching our streets, as well as county and state police travel around here because we are the 'center' of the county and the main highway goes through here. The town is growing fast though, so there is great potential for real estate or starting a business.
Last weekend I went up north for my sister's wedding and saw how much more crowded it is where I used to live (Chicagoland), and just make me think more how I don't want to live there again. There, you have to lock your doors for house or car or you'll get something stolen. Here, I know people who leave their doors unlocked and even leave their keys in the car all the time without worries.
IMHO, it's definately better than in/near the cities.
