I am German though not from MUC. My godmother lives there and I know the city reasonably well and still have friends living there. I am from the South West and Lindt pointed out you will be very close to the mountains (Austrian skiing region is half an hour away by car). You'll also be close to the Allgaeu (rolling hills, not Alps but high enough to ski and less expensive and closer to MUC.) In the summer there are loads of beautiful natural lakes around the city and the landscape is grand.
In Germany we call MUC the 'most northern city of Italy' as the lifestyle, people and general behaviour there is less -uhm- German, more air kisses, warmer, friendlier, great food, etc. In summer I love the Biergaerten which are open air pubs where you can bring your own food and meet friends to have a beer. Really great atmosphere.
Renting can be tricky, you should start to look at flats early and maybe spend a day or two just looking around the different neighbourhoods as to what suits you best.
MUC is the most expensive city in Germany, followed by Hamburg and Stuttgart. I've lived in over 4 countries on various sides of the Globe, incl. London and I still find MUC to be expensive. It really depends on your choices (flat, restaurants, bars, etc.) I'd def. advise you to get a car, a tatty old one will do. And join the ADAC (German AA). Great value for money, they literally are the Yellow Angels.
With regards to the school system I can only agree that if a teacher has it in for you, you'll reap bad marks. There is not much objectivity in schools though I prefer the school system itself to the English one. In Germany they single and sift out the ones going for higher education at 10 yrs old. They'll go to a 'Gymnasium', a straight 9 year edu that normally results in your A-Levels and an open ticket to uni. If at the age of 10 you get sent to 'Realschule' you can still (after O-Levels age 16) continue on to do your A-Levels if your O-Level marks were good enough, and I mean good enough). If for whatever reason you end up going to 'Hauptschule' you can shoot yourself (sry, but true). Most of your classmates will be foreigners who'll start knife fights in the school breaks and drugs and crime are rife. Children get bullied and girls wear make-up at 12 and so forth...it's the least attractive social segment and I'd rather send my kid to a private school and get into debt than sending it to a 'Hauptschule'.