Personally, I had this same decision a few years back. My choices were to buy a really nice house in town close to things with a small city lot, or buy a run-down fixer upper outside of town (20-30 minute drive) with a large wooded lot and all the space/privacy I could ever want outdoors. I chose the house in town because I was concerned that if I lived that far away from things, I would effectively be isolating myself and adding additional mental hurtles I would need to jump anytime I wanted to go somewhere, not to mention the effect it would have had on my depression.

I am quite pleased with having a grocery store within a 5-10 minute drive from my house. I have restaurants, bars, local shops, and even the public library within a 10-15 minute walk from my house. Having access to high-speed internet in town, vs satellite, or DSL out of town was also a deciding factor in my decision to live in town. Overall, I'm happy with my decision even if I don't have a large private yard to go play in.

My advice to you is to make a list of services, amenities, and conveniences that are important to you about your future home and then buy according to which better fits into the lifestyle you want to live. Best of luck.