Probably every community--city or suburb--has at least some redeeming qualities. And every community--city or suburbs--has some downsides as well.
I'm sure if work moved my family back into the city, we'd rediscover the joys of city living--through the eyes of a toddler. And I'm sure if LOD moved his family into the suburbs or into one of those happening college towns that Dutch pointed out, frolicking in the wide-open spaces might become a popular and daily must for the kiddies.
There is no right or wrong place to raise your family. I imagine most people decide where to live based on the answers to least some of the following questions: Are jobs nearby? Is it conveniently located to work? Can I afford the amount of space I want? Are decent schools nearby? Is it a safe environment for kids? The other stuff just falls into place--hopefully. For now, we're making the most of our suburban lives. Because, I think, where you live is what you make of it.