I like living in Panama. I have to leave every three months to renew my tourist visa, and I usually go to San Jose, Costa Rica.
I find San Jose to be dirty and dangerous. Lots of scam artists and lots of thugs running around. I wouldn't walk anywhere at night by myself.
Panama City is pretty clean, safe and has just about everything you would want. It has drawbacks, like heat and rain.. it'll rain every day from now until probably middle december. I like the weather in Costa Rica much more.
Traffic is insane - I mean absolutely bizarre insane. I've become used to it, but I don't drive that much, really. To and from work - I moved to an apartment about half a mile from my office, and a few trips to various clubs and malls and shit.. I will not drive during rush hours for any reason!
Taxis are everywhere, and cost about $2.00 max for anywhere in town.
Looking to live like a player? Expect to pay around $2k a month or more for a great apartment/condo in a high-rise tower near the water . For $1k you can find a really nice, comfortable place, and for around $800 you can get an old, smaller place, still in a good part of town.
Go
here to look at apartments/condos. Check out Punta Paitilla and Punta Pacifia for places on the water (or close), and Marbella and Bella Vista for other really nice, clean, safe areas in the best parts of town. San Francisco is on the water, but it's kind of out of the main business area.
Also check out El Cangrejo - near most of the casinos, shopping, tourist hotels, etc.
I'm in Marbella and I love it.