I live in Jeffersonville very near by. New Albany has revamped their downtown since building a new YMCA down there. Lots of new shops and restaurants have popped up. Of course you are right across the Ohio River from Louisville if you need a bigger city feel.
Lots of old historic homes downtown and if you don't want to live in the city there are very nice subdivisions in the county within a very short drive. If you have kids living outside the city might be better because the county school is better than the city.
There is a cigar shop in downtown New Albany that has been there forever. Not the best selection and no lounge, but they almost always have Opus. Your are within 15 or 20 mins of a couple nicer shops in Jeffersonville and Louisville.
Let me know if you have other questions.
Rac