Where are the nicest areas of Erie located?
I guess that depends on your definition of "nice" -- you can have suburban, small town, urban or country living all within 20 minutes of downtown. If I were buying a house in the area? I'm an east-sider by birth with a hankering for a lake view, so I'd buy a house out on the ridge in Harborcreek, North East or Greenfield townships. Do you mean the nicest section of the city itself? That's pretty subjective, but probably the south central part of the city, on either side of the zoo.
Pace of life/people in erie....
Reasonable. Not too slow or fast. Unless you're talking politically, and then it's s-l-o-w.
cost of living....
Cheap.
active city or is it still in its rustbelt days?
Depends on who you ask. There is a lot going on in Erie, but there also are a lot of people still believing that "Oh, if we could only build this new highway, we'd get tons of well-paying industries to come in."