We thought hard about this a couple years ago when I was searching for a job. When it came down to it, there aren't a ton of places we really both wanted to be, could stand the weather, had a good job market, and had top-notch school systems like we had in CT.
Potential jobs in Atlanta, Jacksonville, Indianapolis and Phoenix were all significantly less appealing than San Francisco. Yes, the apparent civic pride in having smelly vagrants roaming the city at will continues to puzzle me, but that aside it's a great city and moreover, the surrounding areas are spectacluar and there is a ton of stuff to do.
Of course, paying $3M for a 400 sf house kinda hurts, but what are you gonna do.