If I ever manage to get an opportunity to move to Japan, Kobe is the only place I'd consider. I spent a year there previously and never before felt the sense of a city to call home until Kobe.
Kobe's recovery from the 1995 earthquake has been remarkable. The bay area is home to many fashionable shops and restaurants. The Ijinkan(異人館) district, lined with western style houses, is a great place to sample exotic Kobe.