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Arizona is a no brainer. Palm Springs is fun, but there is tons of poverty close by, and it is just as hot in the Summer. Riverside County is huge, but kind of an armpit. Dallas might beat both. I owned five different homes in AZ, and just bought in Wyoming. No state income taxes, much lower sales taxes, and somewhat lower real estate taxes... and no ac repair bills. I left California in 95, and rarely go there.. It is a shame what has happened.
Phoenix would have more jobs close by, Palm Springs area has more wealth and high ends areas similar to say Beverly Hills. Both have hot summers, in both area the wealthier people tend to leave for the summer.
Both have bad and good areas, you pay for what you get, Scottsdale would is somewhat more affordable for a nice home in a more upscale area than say Rancho Mirage or Indian Wells that are super expensive, even have numerous homes selling over $20 million. I don't think Scottdale has homes that expensive, if they do its only one or two homes at most, but they do have homes for $400,000-$500,000 where that would be hard if not impossible to find that price range in say Indian Wells.
Palm Springs is closer to the beaches and Los Angeles metro, Phoenix is its own metro no beaches but there is mountains about 1 hour away with a very different climate, like Payson AZ.
Depends on your priorities. In Palm Springs, it's almost like living in a small town yet you have mountain skiing a short drive away. The beaches and Los Angeles and San Diego are within a couple hours drive as well, with everything they have to offer. You're much more isolated in Phoenix since any other large city is much farther.
I do believe Phoenix will be less expensive over all though including utilities, auto gas and just about everything else.
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