Congrats to your husband on his new job!
Just wanted to speak up for Sunnyvale. We have a cute little downtown on Murphy (perhaps slightly less cute than Mountain View's Castro St or downtown Los Gatos, but cute nonetheless). From our duplex it is a five minute walk to Cal Train, the library, farmer's market, community pool, Target, grocery store, lots of restaurants, Goodwill, two parks, veterinarian, dry cleaners/laundromat, and much more (and our neighborhood is quite residential/pleasant). Plus we're very near several major roads and bus lines for commuting. I'm expecting to walk almost everywhere next spring when the baby is small. It's not particularly more expensive near downtown here because it's not a very built-up downtown. You want to avoid living in the area near Fair Oaks & 101 (I used to live there and did not always feel safe), but otherwise nearly every neighborhood is walkable in the way I described above. Not all are so close to Cal Train but as far as grocery stores, parks, etc., you can hardly go wrong.