I moved back to Ann Arbor from NYC about six months ago. I think I had to move to New York to see how truly awesome things are here. There is a lot top notch technical talent, the cost of living is low, and abundant cheap space makes it a startup's dream. The quality of life in Ann Arbor is very good, particularly if you want to start a family. To be honest a lot of the really talented people I met in NYC were midwest ex-pats looking for work.
Our start-up is banking on the notion that things are coming full circle for technology, and that we'll see a shift from consumer facing web-applications to physical hardware. Lately it seems that the New York Times agrees:
http://mobile.nytimes.com/2012/08/26/technology/silicon-vall...
http://www.nytimes.com/2012/08/19/business/new-wave-of-adept...