Yeah - Oatley is a very nice area, especially Oatley west. The shopping centre is adequate and across under the bridge the new coles isn't too bad. The station is on one of the best lines in Sydney and probably only about 25 minutes or so to the CBD.
I don't know too much about the schools but there is a fairly big one in Oatley proper. A good high school is at Blakehurst and gets really good wraps from the people I talk to as does the primary school at Connell's Point.
Both are public schools so you may have to go to the closet one to home.
Over the Oatley side you could also look at Lugarno. Mortdate, Peakhurst & Penshurst don't meet my criteria for being out of the way but there are some nice street in those areas.
