Right now I live in what I guess would be described as a town. Its ~100 miles from any major urban area and it's much more effective at providing the majority of the things you mentioned plus amazingly short commute times! It also has some sorts of benefits you would associate with the city as well - for example, I can walk to at least 10 establishments as well as 2 parks whereas when I lived in a suburb the street I lived off of was 4 lanes 45 MPH and didn't even have a sidewalk. Even if it did have a sidewalk the noise of a mass of neverending SUVs buzzing past is unpleasant.
You would also have no problem driving almost everywhere in a smaller city.