If you can afford it, Forest Hill Extension in San Francisco is a great place to live for families with kids. You have a number of choices in terms of schools--from Lincoln High (an above average public school) to Hoover Middle and La Perouse (a French language school)--all of which are fairly strong. You also are far enough away from the action of the city that you don't have to worry quite so much about your kids getting mixed up in city problems. At the same time you are close enough where in 15 minutes you could be at the De Young or down at Mt. Davidson Park or virtually anywhere else in the city.
It is definitely the best of both worlds.