Prescott is a beautiful area, and I am convinced that the weather there is pretty much close to the most perfect on earth. It has four seasons, but very mild. Summers are hot and dry, but not nearly as hot as Phoenix. Winters get freezing weather and occasional snow, but much milder than Flagstaff, and the snow melts in a day or two. The scenery is beautiful, if you love to hike there are SO many options for gorgeous hiking trails. It's an hour and a half from both Flag and Phoenix, so it's centrally located.
Housing in Prescott proper is spendy, but the neighboring towns of Prescott Valley and Chino Valley offer much cheaper housing options. Of course, like in Phoenix and Vegas, the housing market took a dump a couple years ago, so housing prices are pretty cheap (we bought our house in 2007 for $303K and last summer it sold for $189K).
We lived in Prescott (Prescott Valley, more specifically) for 7 years, and left just over a year ago. Our reasons for leaving was - I am a city girl and missed living in a large metropolitan area (and I had NO desire to live in Phoenix) with more cultural diversity, and geopolitically, we didn't fit in very well. AZ is a very red state and most people are extremely conservative politically, and we've very dyed-in-the-wool liberals. I had a very hard time continuing to live there in light of all the immigration reform, and I really disagreed with the way Governor Brewer was taking the state (LOVED Napolitano!).
But anyway, it's a beautiful area, COL is inexpensive (especially outside Prescott proper) and YRMC is a great facility to work for. So that's my spiel.