According to Forbes, Ann Arbor is the third smartest city in the US, behind Boulder, CO, and Bethesda, MD, but just ahead of Cambridge, MA. http://www.annarborspark.org/about-us/newsroom/ann-arbor-nam...
If you really want a great city to live in, though, especially for kids, Plymouth Township, MI (this is actually where I'm living right now) was rated the 37th Best Place to Live by Money Magazine, in part due to its great school system. http://money.cnn.com/galleries/2007/moneymag/0707/gallery.BP...
Employment Review Magazine rated Ann Arbor the 10th best city in the nation to live and work in June 2002. It also earned the number 10 spot in The Princeton Review ranking of the best college towns in the nation in September 2001. Additionally in 2001, American Style Magazine named Ann Arbor the 22nd best Arts Destination in the nation.
Of course, then again, you've also got sites like these for a good counterpoint. http://www.annarborisoverrated.com/