Me and my partner moved to Crystal Palace from Chelsea just over two years ago. We looked all across south London (e.g. Sydenham, West Dulwich, Crystal Palace, Forest Hill, Streatham, Honor Oak, Catford, Beckenham etc.) and Crystal Palace/Forest Hill came out on top by a long way. They offered the best range of shops, restaurants, bars, green space and transport links.
We haven't regretted the move to Crystal Palace at all and absolutely love living there. We live a stones throw from the park, which is fantastic (we use the gym at the National Sports Centre), and love the range of independent restaurants/cafes up on the triangle. Our favourites include:
www.thecrystalpalacemarket.com/
www.400rabbits.co.uk/
www.brownandgreencafe.com/
thesparrowhawkpub.co.uk/
www.facebook.com/fourboroughs/
If you're happy not to live in the hustle and bustle right by the Triangle, Anerley Park and Thicket Road are undoubtedly the best. The housing stock is great (grand Victorian properties) and they are well located between three stations - Crystal Palace, Anerley and Penge West. These have trains that go to London Bridge (around 20 mins), Victoria (around 25 mins) and Canada Water etc. on the Overground. I actually walk to Penge East which goes direct to Farringdon where I work! The nicest road close to the triangle is probably Belvedere Road.
With the range of shops, cafes, green space, schools, bars and sports facilities it is perfect for nearly all types of people. We have a lot of young families, artists and some students living near us.