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Yeah, you're mixing up your geography rather seriously. Not much of anyone would doubt that WA, OR, the extreme north of CA, and north ID qualify as the Northwest. It's quite valid whether south ID is. Culturally and geographically, I think it's more akin to the mountain states you mentioned.
Which is the best to live in would depend on where you go within that state, and what you want from a place. For example, if you want almost nothing but to be left alone, north ID is excellent. Go read the Boundary County land use advice for potential property buyers and you'll see exactly what I mean. If you want access to a modern metropolis, your options are limited to Utah and Colorado, as no place in any of the other states has a city the size of SLC or Denver. If you want 'diversity,' depends whether you mean the dictionary definition (Seattle or Portland or Salt Lake or Denver might qualify), or one of the modern warped definitions that amounts to 'has nonwhites'.
All of Idaho is Northwest because we are on the west side of the Continental Divide and our rivers all feed into the Snake/Columbia systems with the exception of the small Bear River in extreme SE. Some people feel Boise has a NW flair and I consider it a mix of both NW and IMW. Boise has a more NW vibe to it then say Idaho Falls, but that is a cultural thing. There is the Northwest which includes WA, OR, ID and parts of MT, and the Pacific Northwest which typically refers to areas west of the Cascades.
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