I'd recommend Kenmore, specifically the streets between Delaware and Colvin if you're looking for a SFH. I moved last year with my wife and two elementary aged kids.
Background
We moved from Cleveland into a beautiful house on McKinley - it was a good balance of density and a decent sized yard and garden. I don't really feel like I was "on top" of my neighbors despite it being one of the denser suburbs in Buffalo. We were lucky to get a very well maintained 1920's home with fantastic hardwood floors and open porch. There are definitely some properties that need some care, but because of this you'll probably get a steep discount. The best houses seem to go fast, so if you see something you like I'd get into negotiations fast. I had two houses slip away because I delayed before I bought this one.
Good sense of community, neighbors are very friendly. Plenty to do for kids - crafts in the park, children's concerts, etc and all over Buffalo it's plenty affordable to do things with kids, especially in the summer.
Delaware Avenue (the village's retail strip) definitely looks like it has seen better days... but it seems like it has the potential to take off ala Elmwood or Hertel (which are a short bus, bike or car ride away). From what I understand, Sinatra, a local big name bought a bunch of properties and is planning on trying to rev up the district with some renovations. There are some smaller stores and restaurants (personally my kids and I have gotten hooked on Condrell's ice cream
)
School wise has been great - Ken-Ton doesn't have the rankings some of the outer suburbs do but I've had no issues and found parental involvement to be fantastic. Much better than a comparable district I came from in Cleveland (Lakewood). Not as sure about the other schools in the district, but Lindbergh Elementary is a fantastic school. I believe the bounds run from Delaware Avenue all the way to Englewood in the Town of Tonawanda.
Commute - my wife works in the medical campus outside of downtown, and I work downtown. We commute together since it is so close, and it is a breeze, never seemed to exceed 20 minutes with the worst weather we had this winter. And as an option we're close to several bus lines. By my count there are about 6 bus lines within a mile and a half, and about a 5-10 minute drive to the subway park and ride. I wouldn't count on NYC level of service though, especially late at night and on weekends. If you're a cyclist like my wife and I are, there are relatively plenty of low speed and traffic streets to get around. There's a river bike path which runs between Niagara Falls and downtown a stones throw away, which also branches into Delaware Park, which is very nice.
Services are worth the taxes as far as I can tell so far. Taxes rates are high compared to what I was used to but comparable for the other suburbs in the region. Total bill isn't too bad thanks to reasonable property prices. Mild winter this year, but plows were down our street very quickly. The village has a notoriously heavy police presence, which thankfully I have never needed. It does add to peace of mind though.
I came in with a budget of about $300k and spent well below that - it left me more than enough to improve the home and make it "ours". We could have moved a mid-range subdivision in some of the pricier areas of the region (East Amherst, Clarence, East Aurora) but the charm and streetcar suburb feel won me out. We couldn't be happier with our choice! Let me know if you have any questions and good luck with your search.