I'll second the endorsement of Rochester. The quality of life for the cost can't be beat. I have (affordable) gigabit fiber running to my house thanks to a local ISP. Rochester punches above its weight for culture, thanks to the philanthropic history of Eastman, Bausch & Lomb, etc. The orchestra is world-class and affordable, and the music scene in general is quite good, perhaps owing to the Eastman School of Music at UofR, which alternates with Juilliard as one of the best conservatories in the country. Geva, the local stage theater is enjoyable, and the independent movie theater, The Little is great ($3 student tickets, anyone?), and there are fun museums. It takes 20 minutes to drive anywhere. But you can bike if you don't want to drive, most of the year. Housing is actually affordable. Imagine beautiful Victorian homes for <$250k, or even <$150k. I rented a single room in the Boston area last year, and the cost for a month was 150% of my monthly mortgage in Rochester for 10% of the space. The UofR Medical Center is a heavyweight research hospital.

Rochester and Monroe County have an amazing system of public parks and green space, and they're always well-kept. If you golf, there are many nice public courses. Bike trails abound for transit, and you can hop on the Erie Canal towpath trail and ride from Buffalo to Albany. Irondequoit Bay has sailing, and people row on the Erie canal and Genesee river. Club sports take advantage of the parks. Parks nearby have hiking, though not tall mountains.

The Public Market is an amazing resource as you mention. Vendors at "farmers' markets" in big cities have realized they can charge inflated yuppie prices, while the Public Market has farmers from the local area selling directly at wholesale rates, as well as third-party vendors selling overstock/ugly produce from local supermarkets. Wegmans is the best, for consumers and their employees.

The Rochester city government is (mostly) functional and well-meaning, and citizens generally have a sense of civic pride and interest in their communities. The tax base is not what it once was, but the city makes the most of what it can, with new experimental initiatives and impeccable maintenance of public services. Rochester weathered the recession well.

A downside is of course the grey skys of winter, but that is counterbalanced by four distinct seasons with a beautiful summer. When I lived in California I missed having four seasons.

It's a fairly future-proof place to live; Western NY is not prone to natural disasters like earthquakes, droughts, wildfires, volcanos, tornados, or hurricanes. Most areas are high enough where flooding is not a concern. Climate change will have less of an impact than many other areas. Blizzards are likely the most probable "natural disaster", but you can wait them out: snow melts.

If VCs were willing to take more risk, they could bankroll startups in cheaper areas like Rochester and spread their resources across larger portfolios.

Buffalo is having a similar resurgence, or so I've heard. Western NY is cheap enough to take risks, and people are. New restaurants; cocktail joints; art, dance, meditation, and yoga studios are opening all the time. Startups could be next; take a look at Rochester for your next company and lower your burn rate.