I've not been to Morgantown itself, but I used to live in the same county. I looked Morgantown up on the map to reacquaint myself with the area and yes, it's pretty rural and conservative. In addition to Indy being just north of there, perhaps of even more interest to you would be Bloomington, home of Indiana University. GREAT town and lots of crunchy families to be found there, as well as everything that a huge university has to offer. IU has world class music programs that draw lots of big names to town giving you lots of performances and the like to attend if you're so inclined. Morgantown is about 30-some-odd miles from Bloomington so likely not a daily trip. Will you be able to visit before you have to make this decision? I guess, in many ways, the area probably isn't much different than many other rural areas. Martinsville, the county seat, has a history of clan activity which always, to me, at least, gave the area more of a southern feel to it.
The northern part of the county - Mooresville and such, is growing as it becomes part of the Indy suburbs. Lots of corn fields turned neighborhoods - sprawlish.
If you've not been to southern Indiana, it's gorgeous. My understanding is that the glaciers that flattened northern Indiana stopped in northern Morgan county and all the stuff they were pushing created the rolling hills of that area. It's not terribly flat like most people consider the midwest to be. There are still farm fields but they're rolling and pretty. There are lakes and loads of deciduous (sp?) forests. The summers are hot and (horribly) humid. The winters don't consistently see snow, at least not a lot of it. The temps can seem bitterly cold in the winter because of the moisture in the air. There's a wilderness area in Hoosier National Forest and some big state parks in the area.
I don't know anything specific about the schools in that area but most towns tend to have their own school "corporation" so there are tons of these districts which spreads out the resources not giving any district lots to offer (if that makes any sense). I don't think I'd want my kids going to school in Martinsville, as a reference...
Sorry this is so scattered but one of my babes has just started crawling and I'm writing in between discovering what she can now get into. Good luck making this decision and visit the area if you can!