How Do You Decide Where To Live?

I usually pick a house based on who my family is and what they need nearby, and what they can afford (I use the freerealestate cheat sparingly). 

For example, the save file I'm currently playing started with the Fairy pack release so I set up my first family in Innisgreen. Then she married a Mermaid, so when their kids grew up, the mermaid ones moved to Sulani and the fairy ones moved to another house in Innisgreen. Now the grandchildren are getting to the age when they need to move out, so one is going to another lot in Sulani (he's a mermaid), and another fairy is going to San Sequoia because there is a house there she can afford, and she has three kids from marrying a guy with kids, so it's a family friendly location with the splash pads, etc. 

I tend to try to match places with a Sims' personality and goals/aspirations. City life for the artists or college grads looking to mingle, Brindleton Bay or Heneford for the animal lovers, Ravenwood for those with macabre natures, that sort of thing. 

I use Newcrest for recreational buildings like bowling alley, art center, pool, restaurants, cinema, maybe a couple small houses on the 20x15/20x20 lots, but mostly it's a "downtown" area. 

I agree that the worlds and lots can be overwhelming, but I love having lots of choices. 😁 I've been playing Sims 4 since it first came out and have all the packs, but I don't think I've actually visited all the lots in every world even after all these years. LOL!!! 😅 Always something new to discover!