Watauga has lower prices and is a great location. Many of the homes feed into Keller ISD so yes it's a great location! I would say many first time home buyers land in Watauga because of those two reasons. Keller is larger and has more funds to keep the city up. But Watauga is so close you can enjoy both.
Excellent Keller video. I believe the higher end restaurants are on the way as they develop along the 377. Keller is also close to Westlake and lots of new development connecting it to Keller and a higher end restaurant etc. future.