First, this is common and it's not a big deal.
Layoffs happen, even to great developers. Ask about severance, but don't get pushy or threatening if not offered it (you don't want an extortion rap). Ask about a guaranteed positive reference (by contract, and with LinkedIn recommendations) and do be pushy or threatening if not offered it. Have your references checked in any case by a third party. Don't sign non-disparagement for less than 3 months' severance, although you should almost never disparage an ex-employer. Do sign non-litigation if offered a positive reference and a cash severance you can accept (which may be zero, if you have savings and confidence).
Take a week or two to recover, emotionally, but no more. Being unemployed on dwindling savings is no fun, so get yourself in the game immediately before you start getting depressed or moody or whatever. Work so hard that you don't have time to get moody. Looking for work is your new job. Job searches have a lot of latency and you can work on your side projects while you wait for emails and calls to get returned (otherwise, you'll go fucking nuts refreshing your email client).
Describe your situation as a layoff for economic reasons (even if it wasn't) and say that your performance reviews were excellent (even if they weren't) and don't say anything negative about former colleagues, managers, or employers except in a you-or-them situation (such as a 6-month job, where someone will come off looking bad and your job is to make sure that it's not you... but even then, minimize what you say.)
What would you do in my situation (would you stay in a smaller city?)
Take your job search national. It's not about "leaving Cleveland". A good company will give you at least $5k post-tax for relocation. (Add $4-5k for NYC because rental brokers collect 15% on tenant side.) It's about going where the jobs are. Obviously some locales are better than others. Seattle, Boulder, Austin, and Chicago have strong tech markets and (relative to SF or NYC) moderate cost of living. NYC is an option if you don't need a lot of space and you're willing to downsize on furniture. If you choose NYC, include the broker fee (again, 15% of a year's rent) and loss-on-sale for your car (you'll be getting rid of it) in your relo calculations. San Francisco... some love it, some hate it, and I doubt I'd move there without a stellar offer (I'm 31) but if you find something out there, give it a go.
if you could start over in web development, what would you focus on?
Don't fret about starting over. You can't and that's a good thing. The knowledge you've gained is more transferrable than you think. But if I were to start over, I'd jump either into the Python or the Clojure stack (and maybe move to Haskell after 2+ years if I really wanted to build extremely robust, large systems).