I love character houses - and a cramped cul de sac doesn't sound good. But like the others said, you really need to think about the quality your family life living in the house, not just the immediate aeshetic appeal to you of the house itself.
It's stating the obvious, but the location probably determines the quality of your life more than anything. Your journey to work, to school, to shops and every day facilities. The quality of that school and facilities. The people around you that you will mix with. The view both from your house and as you walk locally. The noise or traffic fumes.
Then the garden and the house itself but not just what it looks like. The size of the garden, how private it is, how mature it is, the view. The size and layout of the house.
When we bought our house I was adamant that I wanted a pretty house. Now I think I would consider houses that I more or less ruled out then. Not cramped estates, but large 60s/70s houses on large plots. We got the pretty house and it's worked out fine, mainly because the location couldn't be better and the garden is lovely. But it isn't huge and the layout is odd, so we are still planning on spending more money on it. I suspect we could have got just as good space and location (though possibly not garden) for a lot less money if I had been more flexible on aesthetics.
What does DP think are the downsides of the Victorian - are they about location/space/cost or does he just not like old houses?