The compromise that I've made is that in spending a few days in Mountain View every 6 weeks or so. It's not terribly inconvenient for me, allows me to pad my frequent flyer miles, and I generally enjoy California. I think that the cost of living between California and Maryland are a lot closer than Louisville would be, so I've always got my eye open to possibly relocating somewhere even cheaper than here -- my home town is Memphis, TN, which is damn near free to live in comparatively, but I really like Annapolis, its proximity to DC and Baltimore, and the knowledge that almost everything is within a couple of hours.
The biggest trouble I have is that I really like the bigger cities. I love the time I spend in and around San Francisco, and on occasion I'll spend time in NY, which I also enjoy. I can't ever tell though if it's just because I'm effectively a tourist, or how much I would enjoy it as a permanent residence. Ultimately, I think I'm plenty happy anywhere with a temperate climate and the ability to work from home, so I'm occasionally torn on job offers I receive to work in sexier locales. Grats to Ernie for having found his ideal place. The spot I'd move to to maximize dollar value (Memphis) is too hot to be perfectly happy, and all the places I've found with better climates tend to be more expensive -- so perhaps I'm still searching for my idyllic setting, or perhaps it's just a matter of the grass being greener.