You probably couldn't find a better place. Palo Alto is an amazing city, culturally, socially and aesthetically. It is also home to some of the top schools in the nation - public and private. It is surrounded by equally as desirable cities such as Saratoga, Los Altos, Menlo Park, San Carlos, Burlingame, Hillsborough, Atherton, etc. Equidistant to Silicon Valley and San Francisco (The City, no one actually calls it San Francisco), you are in the heart of one of the most dynamic places in the world.
Education is also of top priority on the Peninsula (Palo Alto and it's surrounding cities in San Mateo County). From academic achievement, social and arts development, test scores, to enrollment, curriculum, and School Board meetings, you won't find a group of more dedicated and involved teaching professionals, parents, and students.