We moved to Guernsey not quite two years ago (40yo, one toddler, one on the way). We are so happy we did. It is the best balance of all worlds. The salaries are good, the work-life balance is good, the "commute" is a 15-minute walk, and you can drive 10 minutes to the beach after work.
Obviously, as it is offshore, things are a bit more expensive (but taxes are much lower), and shopping and entertainment choices are more limited than onshore. But it's not like an island in the Caribbean -- there are no third world problems like food or water shortages, failing schools, fear of muggings, etc. Guernsey is safe and has a standard of living comparable with the UK.
Yes the roads are narrow and cars drive too fast, but there are many places in England like that. We don't care because we are in the car maybe 30 minutes a week. We live in St Peter Port, so our jobs, our child's nursery, our local pub, and most of our social activities are an easy walk. The drive to the beach, the park, the hardware store or the airport is 10 minutes, so why get too fussed about the roads?
The housing license/work permit regulations were confusing and annoying at first, but my family got a long-term license, so as long as we keep our jobs those rules don't bother us anymore. Houses are very expensive, but the housing market has hit a low ebb and interest rates have never been lower. Buying a house here is like anywhere: it's a long term investment -- you will get out what you put in.
There are pros and cons to every place. Guernsey is not for everyone, but it certainly works for us.