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I think Rick pretty much covered it all.
The climate there in the Rogue Valley is wonderful. Medford does have a reputation as a haven for meth dealers, but that's not really fair. Meth is a HUGE problem everywhere you go at this point. I think, overall, that the crime rate in Medford is about average for Oregon (which is to say low). It does have some catching up to do in the nightlife department (you didn't mention if you were single), but as Rick also said, there are some great options (Britt Festival, Oregon Shakespeare Festival). If you really get desperate for some city time, it's only about a 5-hour drive from San Francisco for a weekend getaway.
You also mention larger cities... if you want to continue with the urban lifestyle, it doesn't get much better than Portland. That place is about as clean and beautiful as a city can be. But if you want to take a step back into a smaller place, Medford is a good option.
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