Perhaps the BBC got a better look at the place - with the seaplane rides and the Macquarie lighthouse - than most of us. Still, Sydney, at least around the harbour and the beaches, is a treasure.
That entire show was a bit of a joke. Sydney is a really nice place if you can afford to live in the Eastern Suburbs, have a nice house near the water or up on the North Shore. The blokes working on the bridge had a great job but I bet they don't live near work.
Most people can't - they live (as my Mum did) out west. Liverpool, Penrith, etc. For those people there is no nice harbour, just the tedium of a commute and then working in a city that you can't afford.
Melbourne is, unfortunatly, heading down the same path with these awful McMansion suburbs in the flat lands on the way to Geelong. No public transport and everyone drives into the city. The good bit about Melbourne is that you can still live affordably in a nice area not to far from town and each little area has a feel of its own. You just need to chose to not have a 4 bedroom room house with a 3 car garage.
Back on topic: I vote for Newcastle or Rocky. Just so little going on and haute cusine is a parma and pot.