I live within a place called Ponyville, a town within Equestria. Canterlot is our capital city, however, and where the princess... Princess Celestia lives. It's supposed to be a very nice place to live.
[She hasn't left her home to travel all that often though, so she can't compare it.]
Though personally even if it changes from pony to pony the forest of flowers sounds so much nicer. Nature is a little more peaceful.