I would absolutely want to live in Middle Earth. I mean, sure you have orcs and goblins and a force of ultimate evil or two. And perhaps worse than all of that: No internet. But also: Hobbit holes. Picturesque woods and mountains. Hobbit holes. Cities built around waterfalls. Hobbit holes!
This concept art for The Hobbit: An Unexpected Journey, by John Howe and Alan Lee, serves as an excellent reminder of how beautiful it is over there. Meanwhile my city has dog poo and trash-filled gutters in abundance. *sigh*