I lived in Auckland for 4 years before moving down to Hamilton 3 years ago. There are pros and cons for both cities, but as for work and family life, Hamilton suits us better. The biggest upside is daily commuting. There is no traffic jam even in peak hours. with both of us working, this is very important, since we can choose to live in any area that we like, all within 15-20 min drive.
Another plus is the affordable housing. There are some run down areas in Hamilton, like in any cities, but the average streets are better than that of Auckland and there are some very attractive neighbourhood, with good quality houses at very affordable prices. You can get a substantial 4 brm house in the best streests along the river for 60-70k, which is the price you pay in Auckland for a basic 3brm in the very average central area (still needs to spend 40-50min in traffic to get to work). For a decent 4brm house (new or fully renovated) in a good area, that's 40k-50k. And a comfortable family home for 30k-40k. Still neat and tidy first homes for 25k-30k.
There are plenty of good shopping centres in both city and suburbs, same supermarket chains as in Auckland, and much better parking and access. The facilities in malls are also comparable to that of Auckland. There are excellent schools from primary to college, all within easy access. the walks along the Waikato river is beautiful, and there are plenty of parks. I also love the central location of Hamilton, very good for the family to spend a weekend in Rotorua, the Mt, Taupo, Raglan, or Coromandal. Auckland is only 1.5 hr drive away if we need a visit.
I still miss the beaches in Auckland, but at hindsight, we haven't spent much of our time there anyway, given that we'd been busy and spent almost 2 hrs daily commuting (we tend to work extra time after work since there was no point sitting in the traffic anyway). Now that we go for river walks or parks on a daily basis. We even used to go fishing in Raglan and mountain biking in Rotorua after work before we had the babies. Our home and garden is much more enjoyable and we can actually spend some time there after work.