Yes, I'd choose a surburban villa too, unless money was no object. Then a big house and garden with the city buzz but a short distance from my sweeping driveway comes to mind. Ahh Holland Park...
Anyway, agree with all the advice given here, especially Smls', who raises some important points about relying on parents for lifts and commuting to school.
Having said that, I grew up in a large house in the centre of Cambridge. Once of the good things was the stream of visitors. Friends with an hour or so to kill before their bus took them home were always dropping in. This was especailly nice in my teenage years - with no brothers and sisters to liven things up socially, being at the geographical centre of things and a stone's throw away from school had its advantages - and made it easier for me to safely stay out late and get home without having to sleep over in the houses of little-known friends - or boyfriends. No late bus to miss or expensive taxi fare to pay. And I didn't have to learn to drive, so my parents didn't have to worry about my teenage driving ability, or worry that I'd be giving lifts to my friends while under the influence of alcohol.
Allie, I don't know which city you live near, obviously some city centres are more desirable places to live than others.And possibly there's a distinction between 'outer city' ánd nearly-the-country suburbia. We chose the former.
We were also keen to move to an area in which older children could play out with a good degree of safety. So we drove round the area a lot at different times to try to determine this - and to observe how the groups of children behaved. We also carefully considered traffic flow. I personaly would think twice about moving to a property set on a busy road.
I'd also say wherever you move to, try and get your children to cultivate friends from different areas. As my Cambridge friends found out, it was particularly useful to know someone who lived near the station, in case you missed that last bus or train home.