I live in Guadalajara and it's fantastic. There's plenty of paradise here in Mexico. Don't believe the hype.

This might give you an idea of the difference in cost; you can compare a few different cities with this thingamijig:
http://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=Panama&country2=Mexico&city1=Panama+City&city2=Guadalajara&tracking=getDispatchComparison