Nothing looks better in a house than hardwood floors. I have two kids and I really wish I had carpet sometimes. However, financially, hardwood floors make more sense. I haven't really investigated the price difference between other people on the internet and places like Home Depot/Lowe's. I found one website Internet Lumber I am a proponent of buying tings on the internet though.
I personally think that hardwood flooring looks awesome. On this site you can also find information about decks with a hardwood floor. A deck in California (where I live) is awesome. It's considered square footage too; so when you sell your house it will reflect as a larger house.
Hardwood also helps with spills. I don't know the replacement ratios; however, I can't imagine that hardwood floors would need to be replaced more than carpets. I cleaned carpets for six months and I learned that there is no good way to protect carpets without paying more than you should.
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