Thanks everyone for the information. Delaware does sound like a great relaxed place to live. It's too bad about the replenishment projects. I saw pictures of Fenwick and some other beaches there that were beautiful. I also heard from a guy at my surf break that he surfed Fenwick in the day and it fired.
I lived in New jersey last year and moved back to Delaware last fall.
I lived down here at the Delaware beaches during high school before going to college, and spent most of my summers down here during college.
NJ beaches and Delaware are really different. If you are seriously considering the move, you should really come visit for a while to get the feel of the area. Or maybe, rent for a year or something.
They call southern Delaware, slower lower, for a reason. Its a slow, country style pace down here in the winter, and tourist packed in the summer.
I think its a cool place to live, but its different then being near the more populated urban areas, which brings less corporate jobs and thus less diversity and culture. The key to living down here, in my opinion, is establishing those local connections during the off season... because in the summer time, its rush rush rush for all the local businesses and most of the people you run across are just staying for the week.
Property tax is definitely cheap, but school systems have been ranked very low in Delaware compared to nearby states. I originally moved from PA in high school, and there was a drastic difference in academics.