I live in a village just South of Newbury, it's not cheap but you would get more for your money than Wokingham.
Village Primary Schools in the area are very good, mine go to Ashford Hill Primary school where my DH is a governor and it's a fantastic school, very nurturing and smaller class sizes, as intake is 20 in 5 classrooms. Other parents I know have children in Burghclere and The Priory in Charter Alley, all 3 have similar good SATS results, and also get used as pre-prep for the private schools, so places do come up as children leave.
The sought after state secondary schools seem to be Park House (Sporty) and St Barts, strictly speaking we are out of catchment although children do get in from our school. I have also heard that Trinity is also a very good school too. Lots of private schools here if that's what you want.
Newbury town has everything you would need in terms of shops and restaurants, and the race course too.
Thatcham is fine, I have several friends who live there, housing is more affordable, nice open spaces and safe. Town centre is OK. The train goes into Paddington. That said, I wouldn't choose to live there myself as it lacks a bit of character in my opinion.
If your DH can go into Waterloo then Overton and Whitchurch may be worth a look too.
Hope that is useful.