I absolutely factor this in. I wouldn't send my child to a school or daycare I didn't like just because it was close, but I might send her to the one I liked a little less than my first choice if it would save us a lot of commute time.
The commute is every day. Our kid goes to a school that's a 20 minute walk or a 5 minute drive away. Most days we walk and I love both the time walking with her, and the time walking on my own. It adds to our overall sense of functioning and happiness as a family.
If I had to scramble every single day to get out the door and beat traffic for a 30 minute commute both ways, twice a day, that would really wear on me. And I assume it would negatively impact my kid, too, since she'd also have to rush and she'd have a less attentive, less relaxed parent with her.