If I were to buy in Temecula right now Morgan Hill would be my choice. We bought in Wolf Creek 4 years ago and we are happy but Morgan Hill seems a bit more mellow in general. We are within 2 miles of a high school, a middle school, an elementary school, a huge sports park, a fire station, a casino, and Pechanga Parkway. Not to mention there are 2 commercial lots yet to be built which will add to the congestion.
Every time I drive through Morgan Hill I consider moving there because of its location, views, and peacefulness. Both Morgan Valley and Morgan Hill have some great deals right now.
On a somewhat related note, Temecula was recently ranked the 2nd safest city in America for cities with over 100,000 residents based on FBI crime statistics.