I live in a village and we have a great sense of community. I don't know everyone in the village, but do know quite a lot of people. We have half a dozen shops (local shop and post office, hairdressers, chippy, off licence etc) and three pubs, and I never go out without speaking to someone, even if it's just a 'hello' to someone I only know by sight. Personally I love living in a community, there is always someone to help you if you need help (by giving you a lift, or 'lending' you a cup of sugar), and I make sure I always return favours. With my immediate neighbours, at holiday time we put out each others bins, and keep an eye on the house. In fact one neighbours house was broken into whilst she was on holiday, it was noticed the next morning, the police informed, the place secured, and the thieves caught, all before she came back.
We have made some brilliant friends here, and it is great for the kids (now teenagers) as there is always someone to knock around with. And I would know if they were up to mischief, because someone would tell me!
Personally, I love it.