My wife and I bought a house in pre-car suburb that was exactly what we wanted: dense, public transit, lots of places to go on foot (doctor, library, municipal building, 3 separate shopping districts, hardware/general store, dozen parks and playgrounds, &c). We wanted a good school, but weren't willing to sacrifice our way of life, and we found, I think, the perfect spot. (We love our neighbors too, but didn't know that until after we moved in).
When we looked at places I gave an immediate veto if there wasn't a sidewalk or if there wasn't a trolley stop a within 10min - 15 min walk, or a bus within 5min. Our elementary school is an 8min walk, the middle and high schools are about 20min. We only drive when public transit would more than double the amount of time it would take or if we need to go where there isn't transit. My wife will also drive for the large grocery runs each month, but the week-to-week is put in the stroller and carried home.
We enjoy this. Cars drive us nuts, not to mention the hassle of parking.