Los Angeles has everything, except the public schools and cost of living. You can find some really nice suburbs which have good schools and RELATIVELY low cost of living. You have to deal with a LOT of traffic though, even in the suburbs.

1) Good public schools for our son - Some school districts
2) Great biking - YES
3) Progressive, functional politics/city + state management - Horrible state management, progressive politics
4) Great scenery - YES
5) Great weather - Except for the 5 or 6 days a year it rains
6) Hot is good, cold would have to have awesome Springs & Summers - Mild
7) Affordable cost of living - NO WAY
8) Friendly people - 90ish% are nice