Finding a happy medium is a challenge.
Yes, it is. One thing to consider when you compare houses at different distances from work is the value of your time. If you spend 2 hours a day bike-commuting you're either getting needed exercise that you weren't getting, or it's "free" time because you aren't exercising somewhere else. If you spend 2 hours a day/10 hours a week car-commuting, that time is worth money: if your job made you work that many hours extra you would expect to be paid accordingly. Depending on your skills, 10 hours a week of work might be worth $55 or $500+, possibly $20,000 per year after tax. If you didn't save enough on housing to cover the cost of that time, perhaps you've cheated yourself.