I've lived in extended periods in both Toronto and Vancouver. I'm currently settled in Vancouver...
Toronto and Vancouver are very different. Those who like one over the other often do so based on subjective means. And that's fine... I think sometimes a 'gut feeling' of comfort is the first step to choosing a city to live. If you have that choice. I moved to NYC in 2002 and decided it wasn't 'home'. I visited Toronto, loved it, and moved there. Two years ago I moved to Vancouver to 'slow down' and be closer to family and some friends. I still miss Toronto.
I have found Toronto to be far more interesting and exciting than Vancouver. Toronto has interesting neighbourhoods, interesting old buildings (eg Annex, Cabbagetown, Riverdale), and nightlife in various places making FAR more interesting neighbourhoods in Toronto. Toronto has a theatre scene, flagship stores, corporate headquarters, streetcars, and an new urban development density and intensity far more interesting than Vancouver's. I was always excited to see what new project was proposed in Toronto, be it the crazy 40 Wellesley E, Trump Tower, 1 Bloor E., etc.. Vancouver isn't quite as exciting in that regard.
Vancouver is a cute city. Lovely surroundings. Moderate, moist climate. And YES winters here are brutal. I suffer seasonal depression, and gawd help me LOL. But Vancouver provides more opportunity for 'outdoor activity' close to its city centre (I'm a downtown-living guy). I find the inner-city streetscapes of Vancouver to be more pleasant (street trees, sidewalks, decoration, etc...Toronto could easily improve theirs IMO). Vancouver's pace is slower, which drove me crazy at first, but I got used to it. I walked along the beach yesterday in the sun, which was nice... but the overwhelming pot odour sure was noticeable
. It's not just a stereotype.
Vancouver's 'smugness' is partly rooted in an urban low self esteem, I think. I think Vancouver looks to rich cities like Toronto with some jealousy. It's a 'second city' or 'third city' syndrome. Vancouver lacks the shopping and corporate headquarters of Toronto, as well as the population. Vancouver is not as politically influential. It is geographically far from Central Canada. I think there is an inferiority complex in Vancouver that is masked in a 'smugness'. However, I'm shocked at how many of my friends are moving from Vancouver to Toronto recently! And cause they like TO... so it goes to show that Toronto definitely has benefits to some that Vancouver isn't meeting. Oh and the inner city real estate prices here are still crazy :S
So in summary, I think a 'better city' is subjective. I'm staying put for now. But to Torontonians, I'd say never put your city down. Just work on improving it. It's a great place to live, and can continue to get better. I think sprucing up Toronto's public realm would go a LONG WAY to making it an even better place!