Figure up the cost of commuting. 50c/mile is a pretty good baseline to figure the monetary costs. My housing cost went up, but the difference in the commute costs more than offsets. Think about the time you spend in the car, that's time you aren't teaching and you aren't with your family.
On the other hand, I know some people use their drive time to plan for the day and/or decompress. If that's you, maybe a longer commute is better.
As for seeing kids out and about, I run into them once in a while. It's not ever been a big deal. Usually they're just surprised that I have a life outside of the band hall.