I think Encinitas/Cardiff area is hard to beat these days. Their downtown areas are more vibrant than ever yet they also have a pretty good grasp on development/planning. The beaches are some of the best in north county; Moonlight is super family-friendly with its little playground and snackbar. Both towns have great libraries (esp Encinitas library) and park and rec programs. Both have excellent elementary schools and are part of the SDUHSD middle and high school district, which includes the top performing middle and high schools in San Diego.
In two years (even now) it may be impossible to find anything west of 5 for a million, but there are some great neighborhoods just east of the 5 in both Encinitas and Cardiff.
I also love Solana Beach but would give Encinitas/Cardiff area (east of the 5) the edge for better affordability and family friendliness.
We moved here from the east coast 10+ years ago and chose Del Mar, which at the time looked like the best bet for schools, beach/family life, having a town w/character, etc. Unfortunately, the Del Mar downtown has sort of stuck with overpriced shops and restaurants catering to high end tourists while the towns to our north have evolved into more fun places attracting younger people and families.
