I think if I lived in an urban center, I'd be more at peace with the whole condo thing. However, being in a suburb, I find that I'm surrounded by homes and the distances between things that homes allow for. That said, I'm on a great bus line and live across the street (literally) from one of the best children's museums in the area.
I think I'm mostly struggling with wanting to get some space for my DH and me, as well as space for the toddler. We're also in a basement condo, so dragging the stroller up and down the stairs is making me nutso.
I think things will be easier as the summer approaches when the weather won't change every 30 minutes, so making the jaunt to the park/pool/farm won't be a crap shoot on whether we'll make it home dry or not.
Not sure if that answered your questions.
In a nutshell:
Biggest Challenge - my DD doesn't have her own space (she has her own bookshelves, but toys are under the sofa and in storage under desks) and DH and I would like to have a bedroom for her as well as a bedroom for us.... that and very little seems to grow on my partially sunny deck.
Favorite Things - our location is great, 20 minute bus ride to downtown Seattle, across the street from grocery stores and museums, no yard to clean up, low heating/cooling bills, knowing that my current ecological footprint is fairly small.
Someone else talk up their favorite things as well! I'm sure I'm missing how great this can be, or what I can do to make this space more of a home, instead of just an abode.