Dear Melbournian cheese, are you really from Melbourne? If so, why are you spelling 'Melbournian' with an 'o'?!!
It would be easy to fob off this question as a 'tired' debate, but also it would be easy to underestimate just how important the question is to a lot of people re: career/lifestyle/corporate opportunities/making friends etc. The bottom line is that they are both unbelievable cities compared to some of the ugly crap that exists in the world (e.g. L.A. - what a truly ugly city for those that have lived in NYC/Europe). Here are some thoughts, but I need to be honest to readers and explain my perspective. I am a bona-fide Melbourne boy, but moved up to Sydney for a big Corporate job opportunity, and am now very comfortably resided in Balmain, yet still at times get very homesick for the sheer elegance and theatre/live music/arts/laneway CBD scene of Melbourne.
It all depends where you are coming from, but ultimately I think the best view would come from those who have lived for MANY YEARS in both cities AND overseas in some of the bigger famous modern cities of the world (London, NYC, European capitals). For me, Sydney has changed immensely from the romanticism/unbelievable vibrancy and energy of the early 90s, and I really worry for the city at times.
Housing
For those who dream of ever buying property, it is increasingly becoming 'the dream city', only for those in the top 5% of income globally who can afford to find something in areas like Potts Point/Paddington -
Since when is it bad to become a dream city. The price reflects the the fact that Sydney is where everyone WANTS to live.
because once you leave the 'world famous' harbour/chic inner suburbs, many of the areas of Sydney are truly ugly as anything LA can offer (e.g. Paramatta Road).
And of course there are no run down commercial and industrial areas in Melbourne are there? No of course not they've all been turned into cafes and art galleries..... What drivel!
By the way I live about 2kms from Parramatta Rd and it's quite nice.
Urban Planning/Architecture
Truly a disgrace in Sydney - very much possible that one could spend 6 hours on a Saturday just getting from A to B (e.g. to buy furniture) - there are some real doozy 'highways' - e.g. Pacific
Where the hell are your A and B here? Circular Quay and Dubbo?!?
Or do you just have no idea where you're going. Getting from one side of Sydney to the other would take less than 2 hours, any time, any direction, even on public transport.
This is NOT just part of being a big, bustling, global city - even in NYC and London, the Subway and Tube are often superb ways to get from A to B. Sydney's public transport system/roads/ability to u-turn or turn right is an absolute disaster. To top it off, the RTA is very much possibly the rudest car licensing organisation in the country
Sydneys public transport is not the best but it is a LONG way from being the worst and it is improving. Same with the roads.
The hook turn thing I'm staying away from. If you like them, fine. I happen to think they're silly.
As for the RTA, well that has nothing to do with Sydney.
Quality of life
If I want to meet a friend in Carlton or Sth Yarra or St Kilda in Melbourne for a movie/drink/bar/food, even if I live in woop woop you just go. In Sydney, I find myself 'second guessing' about everything - is it rush hour?
How the hell do I get from Inner West to East in time? Will there be parking? Again this is NOT a reflection of big city vs. country town - more a reflection of urban planning (Melbourne is frenetic too, BUT livable - the city's heading towards 4 million soon)
Maybe it's a reflection of your lack of local knowledge rather than anything you've stated. Just an idea.
Food
At the top 5% quartile, Sydney kicks arse as does Melbourne (Tetsuyas, Icebergs, blah blah blah). It is in the grey 'cheap eats/middle sector/spontaneous meal' situation where Sydney really falls down. I have lost count of the number of times I have received froth on a cafe latte like a cappucino/been served a burnt long macchiato in Sydney.
Again local knowledge is the problem, not Sydney. I have never had a problem finding a good cheap feed in Sydney.
I have also lost count of the number of Sydney siders who genuinely believe that the best place to get coffee when desperate or not in hip places like Darlinghurst, is in places like Gloria Jeans!
There are people like that everywhere. That's why there are places like that everywhere. (Even..... 
Melbourne.....)
(can someone tell me where there are "Laurent"/Pellegrinos/Brunettis alternatives in Sydney please?)
No, sorry I can't because I have NO idea what they are. If they are cafes then all I can say is, keep searching, Sydney's a big place.
And the standard of service is so much lower in Sydney.
I would love to see your proof of that, or is this...
Indeed Tetsuya's in earlier days was renowned for getting his staff down to Melbourne to see what good, classy restaurant service was all about.
...all you've got?
Sydney also seriously lacks good central markets (Paddy's etc no match for the Victorian/Prahran/etc markets in Melbourne)
Whatever, I don't go to markets so I don't know. You can have that point.
Style/European vibe
Sydney great for that Mediterranean/sunny vibe, esp in Summer (e.g. Feb). Melbourne just feels SO much more European in its vibe (even the grid-like streets/compactness like many big European cities), with a nicer abundance of parks/greenery in the CBD.
I don't much go in for 'vibes' man. Oh, and you're flat out wrong about the parks.
A typical night in Melbourne would be lingering in a sexy Italian restaurant with a view of a laneway, then perhaps going to the Melbourne Supper Club, also jumping from bar to bar in Flinders Lane/St. Kilda. In Sydney, a typical night might be more about 'bistroing' and jumping from club to club, or going to multiple pubs with a view.
What the hell is a "typical night"? Also, as a life long denizen of Sydney I must tell you that I have never heard the term "bistroing" before in my life.
Friendships
At first, I was convinced that Sydney was friendlier. Then I realised it was more about superficial friendships, especially with the abundance of overseas workers/transient people in Sydney. Melbourne is so much like Europeans in this regard - often a bit harder to scratch beneath the surface, but once done you have friends for life. It is just SO much harder to consolidate friendships and meet for spontaneity in Sydney because of the traffic issues/lack of deep-rootedness among many.
Rrrriiiiiight.OK. If YOU say so.
Arts/Architecture/live music/festivals
This reflects the weather I'm sure. As Melbourne is colder, it really has resulted in a far superior theatre, film festival, and live music/comedy scene. And wait until you get into the 'underbelly' of Melbourne and find the plethora of clubs, courses, and meetings that exist (e.g. Philsophy nights: ex-pat Social functions). Architecture is just going off in edginess (Federation Square; Melbourne Museum; RMIT Swanston St. campus.
Sydney is strong too (lacking immensely in theatre venues), but as befits a warmer climate, a bit more outdoors event-focused.
Theatre, live music and comedy I'll give you, but not by the amount you claim. Our film festivals are better than yours and our underbelly is huge thank you very much. (Maybe you haven't found it yet.)
Federation Square is a total abomination.
Shopping
Going down Oxford St/Newtown still gets me profoundly depressed when I compare it to Flinders Lane/new QV development/Chapel St/ Greville St/ Brunswick St/list goes on in Melbourne
The list goes on in Sydney too. QVB, The Strand, Piccadilly, Darling Harbour... Newtown?!? Um, that's not really a 'prime shopping district'.
These are just preliminary thoughts, so much more to talk about re: 2 great cities. I hope I have illustrated that's it's not just about big bustling city vs. country town! (Melbourne 2004 is a really cool place to be - can't think of many better places to LIVE than plonking down in Sth Yarra and living your life). But I worry so much for beautiful Sydney, it's becoming TOO much of a rat race with shocking roads, and a tough city for people making less than a 6 figure salary, inhabited by the yahoo vulgar Russell Crowes of the world. Melbourne is more about a European-style low-key worldliness, which i have found constantly makes Sydneysiders uneasy.
Yeah yeah, you just keep telling yourself that.
Uneasy.... sure.
Comba
i realize now that comba's evidence isn't all that conclusive (compliments of adrian); however adrian hasn't lived in melbourne so wouldn't know the quality of life there. i'm confuzzled now 
)
:wink: 
