I currently live in phoenix and I have been here for the past 3 years and hoping to sell and move to Houston. I dont have children but i can tell you as far as education, Arizona is far behind!! My only experience is at the college level and I can tell you after attending college in California and Texas, I was way ahead of most of my peers when I started classes here in Phoenix. For whatever its worth, here is a link to a study about national public school rankings based on several factors and Arizona scored 50th- Not pretty!!
http://www.morganquitno.com/edrank.htm
the usual complaints you may here about Phoenix is the extemely hot summers, but to be honest, you get used to it and the rest of the year is just beautiful. With that being said, Phoenix is a relatively new city comparatively speaking and therefore lacks any real culture, old architecture, and that "real" city feeling that you hope for in a city of 4 million (that includes the metroplex). The cost of living has sky-rocket in the last few years making it much less affordable than what I've researched in Houston. The good news for a buyer is that the market finally fell out and in your price range, especially if you are looking on the outskirts, you may be able to find a good deal. personally, I purchased a 2-2 townhome, roughly 900 sqft. 3 years ago for 93K and its now appraised at 165K.
So, I guess its a mixed bag and I have found that I am not a "desert" girl and I miss grass, big trees, the rain, and yes even the humidity! Good luck!