To be honest it sounds like most airlines have the same kind of issues... However, when it comes to the Gulf I would say EK is probably the best bet - Etihad's still the new kid on the block, Qatar's trying hard to be like EK (but I don't think that using A319s for medium to long haul is the way to go
)
As for where is best to live, well - depends what you like. I like Dubai, I know others will disagree but there is a lot to do there. Abu Dhabi's a long way behind, Qatar again trying to play "catchup". I hear that Bahrain's a nice place, and I know Oman is.... I wouldn't bother with Sharjah though
