Yes, DLI. Monterey proper has terrible schools and DLI is not paying enough for private. Pacific Grove has good schools but without the arts that Carmel offers. We are set on Carmel.
I know that area that you are talking about, and there is another area called "mid-valley," which is about half-way between Carmel and CV. So we are actually looking at 5 areas:
1. Carmel, west of the 1.
2. Carmel, just east of the 1.
3. Carmel, right before CV (near middle school)
4. CV Mid-Valley
5. Carmel Valley
1/2/3 are all about the same commute, but 1 is by the beach, so the most fun but the most expensive to rent/buy. 4/5 both add 15-20-minutes each way, feed to a different elementary, but 5 is the most affordable to rent/buy with bigger, nicer houses and lots and often with private pools. As a result, we are between 1 (pay to be near beach with good commute) or 5 (get a deal with private pool with worse commute).
On average, DH will go into Monterey 3X/week, because there are weeks that he travels, weeks off, and weeks that he can telework. I will work in Salinas, so my commute will be about the same from 1 or 5.