We have a compromise by living in a very small market town - but is the size of a large village. We moved here from the suburbs of a large town a few years ago and it was the best thing we did. I'm really happy here, feel very settled and doubt I'll ever leave this place.
As a market town, its slightly larger than just a small village and we've got more amenities - shop, butchers, post office, pub, few tourist shops and the like. But its enough to have its own cubs and brownies groups, exercise class for the grown ups and so on..
But its still small enough that when I pop to the shops, I know several people and we have a quick chat etc etc...
The thing I love most though is that my children have that freedom that I could never give them in the town. There just wasn't the culture of going out to play there, and the school was set over such a wide catchment area that DDs friends never lived close by and so she had no one to go out and play with. Now, she's got a hit list of about 8 / 10 children, so she can usually find someone home
. Quite often, during the holidays she goes out to play and doesn't come home until tea. She hangs out with her little gaggle of friends as they move from house to house, to the park and so on... This to me, is worth its weight in gold. After a couple of years of living here, DD still sometimes says to me 'we're really lucky to live here'.
But as she turns into a teenager, it is slightly bigger than a small village with more children around and a bit more to do... We're also on the bus route into town... so they won't be so remote when they're teenagers.